"I don't think it's unreasonable to pay more for your usage at times of peak demand (and less off peak), others may disagree."
The real function of energy suppliers is little understood, and it's not reading the meter and sending you a bill. It is to insulate customers from the brutal world of the wholesale markets, where generators offer contracts using pricing that varies by half hour, and by day and season. Those contracts are settled on what amounts to a take or pay basis. If you buy more than your customers use, you have to sell back into the market (either bilaterally in advance, or through the market's balancing and settlement process on the day) - that's probably at a loss. The big losers, however, are those who buy less than their customers use, because they are hit with "out of balance" charges which can be very expensive, easily enough to wipe out a company that gets it wrong.
If you start down the route of "time of use" tariffs for residential customers, then you have real transparency problems for customers. Either the time bands are a crude approximation of the wholesale reality with unintended consequences, or you try and mirror the whole electricity charging structures, which include charges for distribution capacity, for maximum consumption rate, for total consumption, and has rates that can't be declared much in advance because the wholesale market doesn't work like that. And potentially you have to make customers sign up to similar "take or pay" tariffs (which mobile phone users are familiar with) accompanied by huge "out of bundle" charges if you exceed your contracted volumes.
If people really want to have 48 different billing periods per day, with rates that can vary for each half hour, and have different charges for each day, with the meter negotiating (along with the other 25m smart meters!) for the cheapest half hourly rates, it can technically be done. The bill will be good reading, particularly if you don't want your winter fuel payments to be five times the summer payments, and thus have a direct debit overlay. Note that DECC, OFGEM and Which are all agreed that even current bills of a standing charge and a fixed flat rate are challenging for customers to understand.
If you believe that you should fit your energy use to the convenience of the generators and distributors, then you're in company with DECC and OFGEM. Personally I think that things should work the other way round, and the systems should make my life easy, which (believe it or not) is the system we currently have.