Advanced Search
MyIDEAS: Login to save this paper or follow this series

An Analysis of a Demand Charge Electricity Grid Tariff in the Residential Sector

Contents:

Author Info

  • Andreas V. Stokke
  • Gerard L. Doorman
  • Torgeir Ericson

    ()
    (Statistics Norway)

Registered author(s):

    Abstract

    This paper analyses the demand response from residential electricity consumers to a demand charge grid tariff. The tariff charges the maximum hourly peak consumption in each of the winter months January, February and December, thus giving incentives to reduce peak consumption. We use hourly electricity consumption data from 443 households, as well as data on their network and power prices, the local temperature, wind speed and hours of daylight. The panel data set is analysed with a fixed effects regression model. The estimates indicate a demand reduction between 0.07 and 0.27 kWh/h in response to the tariff. This is on average a 5 percent reduction, with a maximum reduction of 9 percent in hour 8. The consumers did not receive any information on their continuous consumption or any reminders when the tariff was in effect. It is likely that the consumption reductions would have been even higher with more information to the consumers.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.ssb.no/a/publikasjoner/pdf/DP/dp574.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 574.

    as in new window
    Length:
    Date of creation: Jan 2009
    Date of revision:
    Handle: RePEc:ssb:dispap:574

    Contact details of provider:
    Postal: P.O.Box 8131 Dep, N-0033 Oslo, Norway
    Phone: (+47) 21 09 00 00
    Fax: (+47) 21 09 49 73
    Email:
    Web page: http://www.ssb.no/en/
    More information through EDIRC

    Related research

    Keywords: Electricity consumption; demand charge tariff; demand response;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Herriges, Joseph A. & Baladi, S. & Sweeney, T., 1998. "Residential Response to Voluntary Time-Of-Use Electricity Rates," Staff General Research Papers 1233, Iowa State University, Department of Economics.
    2. Torgeir Ericson, 2006. "Time-differentiated pricing and direct load control of residential electricity consumption," Discussion Papers, Research Department of Statistics Norway 461, Research Department of Statistics Norway.
    3. Faruqui, Ahmad & George, Stephen, 2005. "Quantifying Customer Response to Dynamic Pricing," The Electricity Journal, Elsevier, Elsevier, vol. 18(4), pages 53-63, May.
    4. Ramanathan, Ramu & Engle, Robert & Granger, Clive W. J. & Vahid-Araghi, Farshid & Brace, Casey, 1997. "Shorte-run forecasts of electricity loads and peaks," International Journal of Forecasting, Elsevier, vol. 13(2), pages 161-174, June.
    5. Herter, Karen, 2007. "Residential implementation of critical-peak pricing of electricity," Energy Policy, Elsevier, vol. 35(4), pages 2121-2130, April.
    6. Berg, Sandford V. & Savvides, Andreas, 1983. "The theory of maximum kW demand charges for electricity," Energy Economics, Elsevier, vol. 5(4), pages 258-266, October.
    7. Granger, Clive W. J. & Engle, Robert & Ramanathan, Ramu & Andersen, Allan, 1979. "Residential load curves and time-of-day pricing : An econometric analysis," Journal of Econometrics, Elsevier, vol. 9(1-2), pages 13-32, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:574. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (J Bruusgaard).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.