Uncertainty Based Approach of Commercial TOU Tariff

Abstract

Time-of-Use (TOU) pricing is a system in which prices vary based on the time of day, with higher rates during periods of high demand and reduced rates during off-peak hours. In Malaysia, residential customers are charged a fixed rate. Industrial and commercial clients use simple TOU pricing, in which they pay a lower rate for power consumed at night and a higher rate for consumption during the day. Some industries have paid a high price for their products when they could have saved a significant amount of money by selecting the tariff that maximizes their benefits. Based on the provided sample data, an analysis of medium voltage general commercial tariff (C1) and medium voltage peak/off-peak commercial tariff (C2) is performed. This initiative applied uncertainty analysis to the C1 and C2 TOU tariffs for commercial users in Malaysia. Modelling and simulating the uncertainty analysis based on the mean and standard deviation required the dataset’s date-time and kW/h as the primary two parameters. The Python application was utilized to construct and comprehensively evaluate the model analysis. This study will only assess and compare the two available tariffs; all changes and decision-making will be left to the discretion of the users. The results indicate that tariff C1 provides customers with greater benefits than tariff C2 due to its reduced mean.