Exploring Socioeconomic Implications of Time-of-Use Electricity Pricing on Residential and Electric Mobility Sectors in Developing Countries

Jordan is rapidly adopting renewable energy and electric vehicles (EVs), positioning itself as a leader in the Middle East’s energy transition. However, challenges in maintaining grid stability are rising. Time-of-Use (ToU) electricity tariffs hold promise in promoting demand-side flexibility; however, their impact in developing countries remains underexplored. This study investigates the effects of ToU tariffs on Jordan’s residential and transport sectors using historical data under a static demand assumption to isolate the direct tariff-design effect. Our results reveal that ToU tariffs may disproportionately burden low-income households, with electricity bills rising by 67% to 158%. In the transport sector, even grid-friendly EV charging results in a significant rise in bills, up to 130%. These findings raise equity concerns and highlight the need for tailored ToU structures. We conclude our study by discussing the policy implications of our findings and offer actionable insights for policymakers to ensure equitable access to affordable energy in Jordan and other developing countries facing similar challenges.