 But here's what they are. Smart meters allow for real-time monitoring of energy usage and enable implementation of time of use rates, that's T-O-U to you and I, which vary the cost of electricity based on demand at different times of the day. This system allows, rather aims, to encourage customers to use electricity during off-peak hours when it is cheaper and reduce consumption during peak hours when it is more expensive. Peak hours typically run from 3 p.m. to 7 p.m. on weekdays. Hmm.