Pricing Peak-hour Power

McKinsey News

Utilities in California recently reported that they plan to upgrade their electricity meters with devices that would allow them to charge more during peak hours. Such a dynamic pricing model could prevent power crunches in the future.

GMH believes that peak hours are not fixed in advanced, especially in developing countries. That is one of the justification, of several, to invest in upgrading the interface (not only metering) between the customer and the power system. Dynamic pricing is high tech to prevent the crunches. Retailers are also required to bridge power system high tech with the customer high touch.