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Exploring the impact of network tariffs on household electricity expenditures using load profiles and socio-economic characteristics

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  • Valeriya Azarova

    (The Energy Institute at the Johannes Kepler University Linz)

  • Dominik Engel

    (Salzburg University of Applied Sciences)

  • Cornelia Ferner

    (Salzburg University of Applied Sciences)

  • Andrea Kollmann

    (The Energy Institute at the Johannes Kepler University Linz)

  • Johannes Reichl

    (The Energy Institute at the Johannes Kepler University Linz)

Abstract

Growing self-generation and storage are expected to cause significant changes in residential electricity utilization patterns. Commonly applied volumetric network tariffs may induce imbalance between different groups of households and their respective contribution to recovering the operating costs of the grid. Understanding consumer behaviour and appliance usage together with socio-economic factors can help regulatory authorities to adapt network tariffs to new circumstances in a fair way. Here, we assess the effects of 11 network tariff scenarios on household budgets using real load profiles from 765 households. Thus we explore the possibly disruptive impact of applying peak-load-based tariffs on the budgets of households when they have been mainly charged for consumed volumes before. Our analysis estimates the change in household network expenditure for different combinations of energy, peak and fixed charges, and can help to design tariffs that recover the costs needed for the sustainable operation of the grid.

Suggested Citation

  • Valeriya Azarova & Dominik Engel & Cornelia Ferner & Andrea Kollmann & Johannes Reichl, 2018. "Exploring the impact of network tariffs on household electricity expenditures using load profiles and socio-economic characteristics," Nature Energy, Nature, vol. 3(4), pages 317-325, April.
    • Handle: RePEc:nat:natene:v:3:y:2018:i:4:d:10.1038_s41560-018-0105-4
    DOI: 10.1038/s41560-018-0105-4
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    Cited by:

    1. D'Adamo, Idiano & Gastaldi, Massimo & Morone, Piergiuseppe, 2020. "The post COVID-19 green recovery in practice: Assessing the profitability of a policy proposal on residential photovoltaic plants," Energy Policy, Elsevier, vol. 147(C).
    2. Farrell, Niall, 2021. "The increasing cost of ignoring Coase: Inefficient electricity tariffs, welfare loss and welfare-reducing technological change," Energy Economics, Elsevier, vol. 97(C).
    3. Batlle, Carlos & Mastropietro, Paolo & Rodilla, Pablo, 2020. "Redesigning residual cost allocation in electricity tariffs: A proposal to balance efficiency, equity and cost recovery," Renewable Energy, Elsevier, vol. 155(C), pages 257-266.
    4. Alla Polyanska & Maksym Andriiovych & Natalia Generowicz & Joanna Kulczycka & Vladyslav Psyuk, 2022. "Gamification as an Improvement Tool for HR Management in the Energy Industry—A Case Study of the Ukrainian Market," Energies, MDPI, vol. 15(4), pages 1-18, February.
    5. Yilmaz, S. & Rinaldi, A. & Patel, M.K., 2020. "DSM interactions: What is the impact of appliance energy efficiency measures on the demand response (peak load management)?," Energy Policy, Elsevier, vol. 139(C).
    6. Shi, Zhengyu & Wu, Libo & Zhou, Yang, 2023. "Predicting household energy consumption in an aging society," Applied Energy, Elsevier, vol. 352(C).
    7. Tang, Wenjun & Wang, Hao & Lee, Xian-Long & Yang, Hong-Tzer, 2022. "Machine learning approach to uncovering residential energy consumption patterns based on socioeconomic and smart meter data," Energy, Elsevier, vol. 240(C).
    8. Dodd, Tracey & Nelson, Tim, 2022. "Australian household adoption of solar photovoltaics: A comparative study of hardship and non-hardship customers," Energy Policy, Elsevier, vol. 160(C).
    9. Ansarin, Mohammad & Ghiassi-Farrokhfal, Yashar & Ketter, Wolfgang & Collins, John, 2020. "The economic consequences of electricity tariff design in a renewable energy era," Applied Energy, Elsevier, vol. 275(C).
    10. Eskander, Monica M. & Silva, Carlos A., 2023. "Techno-economic and environmental comparative analysis for DC microgrids in households: Portuguese and French household case study," Applied Energy, Elsevier, vol. 349(C).
    11. Vaughan, Jim & Doumen, Sjoerd C. & Kok, Koen, 2023. "Empowering tomorrow, controlling today: A multi-criteria assessment of distribution grid tariff designs," Applied Energy, Elsevier, vol. 341(C).
    12. Wen, Hanguan & Liu, Xiufeng & Yang, Ming & Lei, Bo & Cheng, Xu & Chen, Zhe, 2023. "An energy demand-side management and net metering decision framework," Energy, Elsevier, vol. 271(C).
    13. Pena-Bello, Alejandro & Junod, Robin & Ballif, Christophe & Wyrsch, Nicolas, 2023. "Balancing DSO interests and PV system economics with alternative tariffs," Energy Policy, Elsevier, vol. 183(C).
    14. Beaufils, Timothé & Pineau, Pierre-Olivier, 2019. "Assessing the impact of residential load profile changes on electricity distribution utility revenues under alternative rate structures," Utilities Policy, Elsevier, vol. 61(C).
    15. Cohen, Jed J. & Azarova, Valeriya & Kollmann, Andrea & Reichl, Johannes, 2021. "Preferences for community renewable energy investments in Europe," Energy Economics, Elsevier, vol. 100(C).
    16. Bovera, Filippo & Delfanti, Maurizio & Fumagalli, Elena & Lo Schiavo, Luca & Vailati, Riccardo, 2021. "Regulating electricity distribution networks under technological and demand uncertainty," Energy Policy, Elsevier, vol. 149(C).
    17. Ansarin, Mohammad & Ghiassi-Farrokhfal, Yashar & Ketter, Wolfgang & Collins, John, 2020. "Cross-subsidies among residential electricity prosumers from tariff design and metering infrastructure," Energy Policy, Elsevier, vol. 145(C).
    18. Azarova, Valeriya & Cohen, Jed J. & Kollmann, Andrea & Reichl, Johannes, 2020. "Reducing household electricity consumption during evening peak demand times: Evidence from a field experiment," Energy Policy, Elsevier, vol. 144(C).

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