Starting October 1st, Shandong province will implement a revised peak-valley time-of-use electricity pricing structure. The initial reaction for many might be concern over having to time daily activities like cooking or using air conditioning. However, this adjustment primarily targets commercial and industrial electricity consumption; standard residential household electricity via individual meters falls outside these changes and will continue to be billed exactly as before. It is factories, shopping malls, restaurants, hotels, and other commercial entities that will need to reschedule their power usage.

Additionally, residential electric vehicle charging piles, electric bicycle charging and swapping facilities, agricultural production electricity, and certain electric-coal-conversion households in Qingdao and Zibo operating under residential aggregated metering can voluntarily opt into the new time-of-use pricing. After October, electricity will be cheapest around midday and most expensive in the early evening. Under this system, prices fluctuate daily: higher during collective peak demand and lower when power supply is more abundant.

With the policy effective from October 1st, the immediate focus is on October and November. In these two months, commercial and industrial users enter the valley period starting at 9 AM. From 11 AM to 2 PM, rates drop further into the deep valley, representing the cheapest three hours of the day. After 3 PM, rates briefly return to the standard level, then enter the peak period at 4 PM, escalating to the sharp peak from 5 PM to 8 PM—the priciest stretch of the day. The sharp peak concludes after 8 PM, but peak pricing continues until 10 PM.

Compared to previous schedules, the changes cluster around three specific one-hour shifts: the valley period moves one hour earlier from 10 AM to 9 AM, the peak extends one hour later from 9 PM to 10 PM, and the sharp peak lengthens from 7 PM to 8 PM. This gives enterprises one additional low-priced hour in the morning but also adds one more peak hour and one more sharp-peak hour in the evening. Businesses that can flexibly schedule production during daylight will find more opportunities to capitalize on cheaper rates, while venues with high evening demand like restaurants, malls, and hotels may face increased electricity costs.

The price gaps between periods are substantial. Under the current floating ratios, peak rates rise 70% above the standard level, sharp peak rates rise 100%, valley rates drop 70%, and deep valley rates drop 90%. For instance, if a standard period price is 1 yuan, sharp peak jumps to 2 yuan while deep valley falls to just 0.1 yuan. Why has the cheap period shifted from late night to midday? Traditionally, low-demand periods occurred in the dead of night, but now many months in Shandong see daytime, even midday, valleys due to shifting supply-demand dynamics. As solar power capacity expands, sunny noons often coincide with concentrated renewable generation. If demand lags, power becomes relatively surplus. Setting midday as valley and deep valley effectively uses pricing to incentivize businesses to operate, charge batteries, or store energy during those hours, maximizing the utilization of renewable power.

Consequently, cheap periods vary by season. From January to February and December, deep valley is 11 AM to 2 PM with sharp peak from 4 PM to 7 PM; from March to June, deep valley extends from 10 AM to 2 PM and sharp peak runs 5 PM to 9 PM; from September to November, deep valley is 11 AM to 2 PM with sharp peak from 5 PM to 8 PM. July and August are unique: summer air conditioning demand suppresses daytime valley pricing, concentrating the valley from 1 AM to 6 AM and sharp peak from 5 PM to 10 PM. Since the new policy starts this October, past months won't be recalculated; the new schedule applies when those months arrive next year.

For ordinary residents, the most tangible impact involves home electric vehicle charging piles. Residential charging piles can voluntarily select time-of-use rates. Once opted in, the fixed valley period is from 11 PM to 7 AM daily; additionally, users can enjoy the same daytime valley periods as commercial users. In October and November, for example, 9 AM to 3 PM counts as valley, with deep valley between 11 AM and 2 PM, while 5 PM to 8 PM is sharp peak. If a vehicle is parked at home during the day, midday charging may actually be cheaper than late night. If the car is needed during the day, setting charging after 11 PM remains viable. Conversely, drivers who frequently charge between 5 PM and 8 PM after work might find opting into time-of-use pricing less advantageous. Therefore, deciding whether to apply for time-of-use rates shouldn't hinge solely on lower valley prices; it also requires evaluating when a vehicle is typically parked and charged.