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Time-differentiated pricing and direct load control of residential electricity consumption

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Abstract

Time-of-use and real-time spot pricing tariffs in conjunction with direct load control of water heaters was offered to residential electricity consumers in a large-scale demand response experiment. Hourly data from the experiment on consumption, temperature, wind, and hours of daylight comprise a large panel data set, which are analysed with a fixed effects regression model. Price responses are estimated for three customer groups, which differ with respect to their choices of tariffs and requests for direct load control. The results indicate differing responses between the groups depending on their tariff combination.

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  • Torgeir Ericson, 2006. "Time-differentiated pricing and direct load control of residential electricity consumption," Discussion Papers 461, Statistics Norway, Research Department.
  • Handle: RePEc:ssb:dispap:461
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    File URL: https://www.ssb.no/a/publikasjoner/pdf/DP/dp461.pdf
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    1. Caves, Douglas W. & Christensen, Laurits R. & Herriges, Joseph A., 1984. "Consistency of residential customer response in time-of-use electricity pricing experiments," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 179-203.
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    3. 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.
    4. Pardo, Angel & Meneu, Vicente & Valor, Enric, 2002. "Temperature and seasonality influences on Spanish electricity load," Energy Economics, Elsevier, vol. 24(1), pages 55-70, January.
    5. Henley, Andrew & Peirson, John, 1998. "Residential energy demand and the interaction of price and temperature: British experimental evidence," Energy Economics, Elsevier, vol. 20(2), pages 157-171, April.
    6. Aubin, Christophe, et al, 1995. "Real-Time Pricing of Electricity for Residential Customers: Econometric Analysis of an Experiment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(S), pages 171-191, Suppl. De.
    7. Faruqui, Ahmad & George, Stephen, 2005. "Quantifying Customer Response to Dynamic Pricing," The Electricity Journal, Elsevier, vol. 18(4), pages 53-63, May.
    8. Mostafa Baladi, S. & Herriges, Joseph A. & Sweeney, Thomas J., 1998. "Residential response to voluntary time-of-use electricity rates," Resource and Energy Economics, Elsevier, vol. 20(3), pages 225-244, September.
    9. Caves, Douglas W. & Christensen, L. R. & Herriges, Joseph A., 1984. "The Consistency of the Residential Customer Response in Time-Of-Use Electricity Pricing Experiments," Staff General Research Papers Archive 10798, Iowa State University, Department of Economics.
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    11. Matsukawa, Isamu, 2001. "Household Response to Optional Peak-Load Pricing of Electricity," Journal of Regulatory Economics, Springer, vol. 20(3), pages 249-267, November.
    12. Johnsen, Tor Arnt, 2001. "Demand, generation and price in the Norwegian market for electric power," Energy Economics, Elsevier, vol. 23(3), pages 227-251, May.
    13. Henley, Andrew & Peirson, John, 1997. "Non-linearities in Electricity Demand and Temperature: Parametric versus Non-parametric Methods," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(1), pages 149-162, February.
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    Cited by:

    1. Mirza, Faisal Mehmood & Bergland, Olvar, 2011. "The impact of daylight saving time on electricity consumption: Evidence from southern Norway and Sweden," Energy Policy, Elsevier, vol. 39(6), pages 3558-3571, June.
    2. Andreas V. Stokke & Gerard L. Doorman & Torgeir Ericson, 2009. "An Analysis of a Demand Charge Electricity Grid Tariff in the Residential Sector," Discussion Papers 574, Statistics Norway, Research Department.

    More about this item

    Keywords

    Time-differentiated pricing; TOU; direct load control;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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