Encouraging uptake of Time of Use Tariffs

Last registered on December 12, 2024
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Pre-Trial

Trial Information

General Information

Title
Encouraging uptake of Time of Use Tariffs
RCT ID
AEARCTR-0014965
Initial registration date
December 10, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
December 12, 2024, 11:53 AM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

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Primary Investigator

Name
Jesper Akesson
Affiliation
The Behaviouralist
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Other Primary Investigator(s)

PI Name
Robert Metcalfe
PI Affiliation
Columbia University
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Additional Trial Information

Status
In development
Start date
2025-01-15
End date
2025-10-15
Keywords
Behavior, Environment & Energy
Additional Keywords
time of use tariffs, demand flexibility, residential demand response
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
Countries worldwide are transitioning to renewable energy to meet Net Zero targets, but renewable sources like solar and wind cannot easily adjust to fluctuating energy demands. One way to address this challenge is by encouraging demand flexibility—the ability of consumers to adjust their energy use based on the grid’s needs.

Time-of-use (TOU) tariffs are a key tool for promoting demand flexibility. These tariffs offer lower electricity prices during off-peak hours (when demand is low) and higher prices during peak times (when demand is high), incentivizing consumers to shift their energy use and help balance the grid.

This study has three objectives. First, we will test email campaigns designed to encourage customers of a UK utility to sign up for a TOU tariff. Second, we will collaborate with the utility to develop and compare different TOU tariff designs to see which ones drive the most sign-ups. Finally, we will assess how enrolling in a TOU tariff affects household energy usage.
External Link(s)

Registration Citation

Citation
Akesson, Jesper and Robert Metcalfe. 2024. "Encouraging uptake of Time of Use Tariffs." AEA RCT Registry. December 12. https://doi.org/10.1257/rct.14965-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2025-01-15
Intervention End Date
2025-10-15

Primary Outcomes

Primary Outcomes (end points)
1. Time-of-Use tariff sign up
2. Energy consumption
Primary Outcomes (explanation)
We define Time-of-Use tariff sign up as switching from existing tariff to the offered Time-of-Use tariff on the utility provider website.

We define energy consumption as the amount of kWh consumed by households.

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
In Phase 1 of the study, we will randomize approximately 220,000 customers into four trial groups (one control and three treatment groups) in partnership with a British utility. Customers in the treatment groups will receive emails that promote Time of Use tariffs offered by the utility. Each treatment group will receive different communication that appeals on different motives to switch to a Time of Use tariff. The control group will not receive any communication as part of this trial.

In Phase 2 of this study, customers who clicked the email link in Phase 1 will be re-randomised into four treatment groups. Each treatment group will be displayed one of four different Time of Use tariffs on an energy provider's website. The tariffs will differ in the number and length of peak times and in the associated electricity rates.
Experimental Design Details
Not available
Randomization Method
randomization done in office by a computer
Randomization Unit
household
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
220,000 Households
Sample size: planned number of observations
220,000 Households
Sample size (or number of clusters) by treatment arms
Phase 1:
Pure control (N = 100,000), Limited offer (N = 40,000), Personalised savings (N = 40,000), General savings (N = 40,000).

Phase 2:
Pure control (N = 100,000, identical households as in Phase 1), low price differential two-band tariff (N = 30,000), high price differential two-band tariff (N = 30,000), three-band tariff (N = 30,000), wide peak tariff (N = 30,000).
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
Heartland IRB
IRB Approval Date
2024-08-20
IRB Approval Number
082024-593
Analysis Plan