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Time-Of-Use Electricity Tariffs With Smart Meters

Author

Listed:
  • Paulo Oliveira

    (ERSE (Portuguese Energy Services Regulatory Authority), Portugal)

  • Margarida Vaz Pato

    (ISEG - Lisbon School of Economics and Management,Universidade de Lisboa, Portugal)

Abstract

This paper proposes a method for scheduling tariff time periods for electricity consumers. Europe will see a broader use of modern smart meters for electricity at residential consumers which must be used for enabling demand response. A heuristic-based method for tariff time period scheduling and pricing is proposed which considers different consumer groups with parameters studied a priori, taking advantage of demand response potential for each group and the fairness of electricity pricing for all consumers. This tool was applied to the case of Portugal, considering the actual network and generation costs, specific consumption profiles and overall electricity low voltage demand diagram. The proposed method achieves valid results. Its use will provide justification for the setting of tariff time periods by energy regulators, network operators and suppliers. It is also useful to estimate the consumer and electric sector benefits from changes in tariff time periods. Classification- JEL:

Suggested Citation

  • Paulo Oliveira & Margarida Vaz Pato, 2014. "Time-Of-Use Electricity Tariffs With Smart Meters," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 59-74.
    • Handle: RePEc:pjm:journl:v:xix:y:2014:i:2:p:59-74
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    File URL: https://ejms.iseg.ulisboa.pt/files/8_PJMS_Vol19_Issue2_Time-of-use_electricity_tariffs_with_smart_meters.pdf
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    References listed on IDEAS

    as
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