Month: July 2009

The concept is to charge a very high tariff during these peak hours in return for a reduction in tariff during the remainder of the year. The objective is to provide incentives to high consumers to cut down either partly or completely their electricity consumption from the grid during peak consumption hours.

For instance, rolling peak schemes prescribe for time of use consumers a particularly high tariff for 100 hours a year in which demand is particularly high and, in consideration, the consumers in this arrangement enjoy reduced time of use tariff during other peak and shoulder clusters

Intentionally engineered electrical power outage caused due to lack of available resources (electricity) to meet demand during peak hours.

The arrangement is meant for large electricity consumers such as factories, kibbutzim, hotels and governmental offices that agree to cut themselves off from the grid during peak consumption hours – and use private generators – in order to cut the load from the grid. These consumers undertake to activate their generators during certain hours (up to 100 hours per year) in return for a financial incentive for each KwH not consumed. The objective of the arrangement is to reduce hundreds of megawatts of consumption during peak hours in order to help cope with the emergency situation in Israel’s electricity economy. In November 2009, the PUA passed new regulations regarding rolling blackout arrangements according to which IEC is entitled to cut off large consumers for longer periods than agreed in the arrangement but must compensate them with even lower tariff