Discussion
A time of day tariff prices energy according to
Answer: D
Correct answer: the hour at which it is consumed
A time of day tariff charges different rates in different periods - peak, normal and off-peak - so as to pass the cost of meeting the system peak to those consuming at that time. It gives the consumer a reason to shift what can be shifted, which flattens the system load curve and defers investment in peaking capacity.
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