In Time of the Day Tariff (TOD) structure incentives for power drawl during off-
peak hours and disincentives for power drawl during peak hours are built in. Maelectrical utilities like to have flat demand curve to achieve high plant efficiency.
ToD tariff encourage user to draw more power during off-peak hours (say during
11pm to 5 am, night time) and less power during peak hours. Energy meter will
record peak, off-peak and normal period consumption, separately.
TOD tariff gives opportunity for the user to reduce their billing, as off peak hour
tariff is quite low in comparison to peak hour tariff.
This also helps the power system to minimize in line congestion, in turn higher
line losses and peak load incident and utilities power procurement charges by
reduced demand