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Is it time for daily time-of-use electricity prices?

Author

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  • Lawson, Rob
  • Williamson, John
  • Thorsnes, Paul
  • Ragnarsson, Eirikur

Abstract

The large-scale roll-out of so-called 'smart' electricity meters that record electricity consumption at frequent intervals gives electricity retailers the opportunity to vary price over the course of a day potentially better matching price to production cost. Of interest to both retailers and policy makers is how New Zealanders might respond to pricing plans that include 'time-of-use' pricing. In this seminar I report the results of a year-long experiment in which a sample of households in suburban Auckland volunteered to experience peak/off-peak price differentials of 4 cent; 10 cent; or 20 cent; per kilowatt hour. These households also received better-than-conventional information about their electricity consumption: a simple chart in their monthly bill depicting daily peak and off-peak consumption.

Suggested Citation

  • Lawson, Rob & Williamson, John & Thorsnes, Paul & Ragnarsson, Eirikur, 2012. "Is it time for daily time-of-use electricity prices?," Working Paper Series 19230, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    • Handle: RePEc:vuw:vuwcsr:19230
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    File URL: https://ir.wgtn.ac.nz/handle/123456789/19230
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