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