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Fairness and Dynamic Pricing: Comments

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  • Hogan, William W.

Abstract

In "The Ethics of Dynamic Pricing," Ahmad Faruqui lays out a case for improved efficiency in using dynamic prices for retail electricity tariffs and addresses various issues about the distributional effects of alternative pricing mechanisms. The principal contrast is between flat or nearly constant energy prices and time-varying prices that reflect more closely the marginal costs of energy and capacity. The related issues of fairness criteria, contracts, risk allocation, cost allocation, means testing, real-time pricing, and ethical policies of electricity market design also must be considered.1

Suggested Citation

  • Hogan, William W., 2010. "Fairness and Dynamic Pricing: Comments," The Electricity Journal, Elsevier, vol. 23(6), pages 28-35, July.
    • Handle: RePEc:eee:jelect:v:23:y:2010:i:6:p:28-35
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    Cited by:

    1. Young, Sharon & Bruce, Anna & MacGill, Iain, 2019. "Potential impacts of residential PV and battery storage on Australia's electricity networks under different tariffs," Energy Policy, Elsevier, vol. 128(C), pages 616-627.
    2. Dong Gu Choi & Michael K. Lim & Karthik Murali & Valerie M. Thomas, 2020. "Why Have Voluntary Time‐of‐Use Tariffs Fallen Short in the Residential Sector?," Production and Operations Management, Production and Operations Management Society, vol. 29(3), pages 617-642, March.
    3. Xiao-Yu Zhang & Stefanie Kuenzel & José-Rodrigo Córdoba-Pachón & Chris Watkins, 2020. "Privacy-Functionality Trade-Off: A Privacy-Preserving Multi-Channel Smart Metering System," Energies, MDPI, vol. 13(12), pages 1-30, June.
    4. Yang, Liu & Dong, Ciwei & Wan, C.L. Johnny & Ng, Chi To, 2013. "Electricity time-of-use tariff with consumer behavior consideration," International Journal of Production Economics, Elsevier, vol. 146(2), pages 402-410.
    5. Claire M. Weiller & Michael G. Pollitt, 2013. "Platform markets and energy services," Working Papers EPRG 1334, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    6. Rabab Haider & David D'Achiardi & Venkatesh Venkataramanan & Anurag Srivastava & Anjan Bose & Anuradha M. Annaswamy, 2021. "Reinventing the Utility for DERs: A Proposal for a DSO-Centric Retail Electricity Market," Papers 2102.01269, arXiv.org.
    7. Simshauser, Paul & Whish-Wilson, Patrick, 2017. "Price discrimination in Australia's retail electricity markets: An analysis of Victoria & Southeast Queensland," Energy Economics, Elsevier, vol. 62(C), pages 92-103.
    8. Roberts, Mike B. & Sharma, Arijit & MacGill, Iain, 2022. "Efficient, effective and fair allocation of costs and benefits in residential energy communities deploying shared photovoltaics," Applied Energy, Elsevier, vol. 305(C).

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