Chubu Electric Power announced June 5 that it would conduct a demonstration test aimed at reducing power demand during peak demand hours. It will set higher electricity rates on a simulation basis for the hours during which a tight power supply is expected, and examine whether the new rates will lead to reduced electricity use in households.
The test will be conducted for about one year from this winter to February 2014 covering about 160 single-family homes in and around Toyota City, Aichi Prefecture. The electricity rate schedule used in the test will offer lower rates for normal hours and higher rates for peak demand hours during which a tight power supply is expected (1:00-4:00 pm on weekdays). These rates will be applied on a simulation basis to half of the households participating in the test (actual charges will be billed according to the existing rate schedule, and the difference will be paid back to the customers in merchandise vouchers, points or other forms of reimbursement). The other half of the households will be billed based on the same existing rate schedule as before. Then, a comparison in power usage and other data will be made between the two cases.
Over the next six months, Chubu Electric Power will construct a system required for the demonstration test. In addition to fitting electricity meters with a device to transmit power demand data from each household to a server of Chubu Electric Power, it will install tablet terminals in these homes to display power demand data and other information.
The utility made the decision to implement the demonstration test after concluding that in order to develop a rate schedule highly effective in reducing power demand, it was necessary to determine the needs and acceptability of consumers as well as their sensitivity to changes in electricity rates. If the simulated rate schedule is found to be effective, the utility will consider the future introduction of an actual schedule.
