Time Based Pricing is a part of the new business and policy areas known as demand response and smart grid. It reflects the fact that the costs of generating and delivering electricity change during the day in order to meet fluctuating demand. Time Based Pricing is the standard method of pricing in the tourism industry. It is expected or observed change of the supply and demand balance during time. It allows customers to respond to price signals reflecting the true costs of electricity at different times, and it enables them to modify their consumption to take advantage of low off‐peak prices.
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