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Tariff Menus to Avoid Rebound Peaks: Results from a Discrete Choice Experiment with Swiss Customers

Author

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  • Patrick Ludwig

    (Center for Energy and the Environment (CEE), School of Management and Law, Zurich University of Applied Sciences, 8401 Winterthur, Switzerland)

  • Christian Winzer

    (Center for Energy and the Environment (CEE), School of Management and Law, Zurich University of Applied Sciences, 8401 Winterthur, Switzerland)

Abstract

While automation helps to increase load-shifting, the combination of automation with time-of-use (TOU) or critical-peak prices (CPP) may lead to rebound peaks at the beginning of low-tariff periods which may exceed the original peak. Using a discrete choice experiment with a representative sample of 696 Swiss consumers, we find that a tariff menu including (i) a flat price with direct load control (DLC) and (ii) a time-of-use tariff without direct load control could avoid this problem. The majority (57%) of mostly younger customers, which could be interested in automation would likely sign up for a DLC with flat prices, while the remaining customers would either chose a TOU tariff with manual load control (28%) or avoid any form of load-shifting incentives (15%).

Suggested Citation

  • Patrick Ludwig & Christian Winzer, 2022. "Tariff Menus to Avoid Rebound Peaks: Results from a Discrete Choice Experiment with Swiss Customers," Energies, MDPI, vol. 15(17), pages 1-21, August.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:17:p:6354-:d:902885
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    References listed on IDEAS

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