Customers of SMART meters with duration-based electricity rates can see peak rates rise by 10 percent, while off-peak rates fall by the same amount.
The increase applies to the key period from 5:00 PM to 7:00 PM when electricity demand rises.
This puts pressure on the supply and puts the most polluting backup power generators into use.
The energy regulator, the Commission for Regulation of Utilities (CRU), is urging electricity suppliers to find ways to encourage their customers to reduce their usage right now.
It has now announced that network tariffs from suppliers will be cut by 10 pc during peak hours. rise, and during peak hours by 10 pc.
The intention is for suppliers to communicate those changes to their customers, although the CRU cannot insist.
“It is important to note that these are network tariffs only and their impact will depend on how electricity suppliers reflect these tariff signals in their retail tariffs,” it said.
The CRU emphasizes the incentive of the off-peak cuts reduction rather than the punitive effect of the peak hour cuts.
With the increases applicable to a narrow two-hour window, the hope is that the prospect of cheaper electricity the rest of the time outweighs the inconvenience of moving chores that require heavy electricity usage to other times.
At the household level, the number of customers with time-of-use rates is very small, but the CRU is hopeful that if suppliers pass on the new rates, they can entice others to sign up.
The Irish Independent revealed last week that fewer than 38,000 customers, or just 4 percent of those with smart meters installed, were actually on time for use or smart tariffs.
The CRU estimates that the new charges could still increase the average annual household electricity bill by €41, but that should be offset by the elimination of a €40 subsidy paid by household customers since the last recession to help large energy consumers. to support.
Commercial customers and especially the large energy consumers such as factories and data centers have by far the most possibilities to facilitate peak demand.
The CRU is calling on electricity suppliers to use the new grid tariffs to push them in that direction.
The regulator said other measures would need to be put in place to encourage changes in electricity use if the new tariffs do not have a sufficient impact.