Many countries adopt a time-of-use (TOU) rate system, in which electricity rates vary by season and time of day, to reduce power usage during peak power consumption hours. South Korea offers a TOU rate plan that depends on the electricity usage of a building and its contracted power; in this plan, the electricity rate reaches up to 300% depending on the time of day. Hence, electrically powered variable refrigerant flow (VRF) systems are increasingly being installed in small- and medium-sized buildings requiring individual cooling and heating operations. This study aims to develop a new control algorithm to reduce electricity consumption and electricity rates for cooling and heating by VRF systems in university buildings adopting the TOU rate plan and apply it to actual buildings to verify the reduction effect. The proposed control algorithm primarily consists of a module that controls the refrigerant evaporation temperature (cooling) and high pressure (heating) according to the indoor heat load and a module that controls the indoor set temperature based on the hourly electricity rate. The developed algorithm was installed in the controller of a VRF system installed in an actual university building and the annual effect was verified using the method proposed by the International Performance Measurement and Verification Protocol. As a result, power consumption was reduced by 17.8% for heating and 4.0% for cooling due to the application of the control algorithm, and the electricity rates reduced by 19.2% and 7.3%, respectively.