Customer Opt-in Dynamic Pricing (CODP)
Dynamic pricing is an innovative way to create a win-win situation for customers and the electricity grid, offering an alternative to the traditional Time-of-Use (TOU) model.
Ottawa-based energy solutions company, Energate Inc., worked with Ontario utility, Alectra Inc. (formerly PowerStream), to develop the Customer Opt-in Dynamic Pricing (CODP) program.
The program was marketed to 1,000 participants as Advantage Power Pricing (APP) a technology enabled dynamic pricing program for residential customers. By encouraging customers to shift demand to off-peak periods, it continues to provide savings to both the grid and to customers.
Participants were provided with an Energate Foundation Smart Thermostat that automatically responds to price signals based on customer preferences. The thermostat pre-heats or pre-cools the home in advance of and conserves during peak price periods. This helps to minimize electricity use during high-priced periods. The program featured an aggressive price schedule with rates as high as 60 cents per kWh, and yet was very popular with participants
who appreciated both the significant savings and the technology they received.
With support from the Ontario Ministry of Energy’s Smart Grid Fund, Energate’s project tested the potential of dynamic electricity pricing. For customers, value was created through reduced electricity bills, and for the smart grid through interactive demand response.
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