Household Price Elasticity of Demand as a Tool for Tariff System Design Leading to Increase of Electricity use for Space Heating Purposes

Demand Price Elasticity of Residential Electricity Consumers with Zonal Tariff Settlement Based on Their Load Profiles

“…As price elasticity of demand values are used as input data for an electricity tariff design [7] and determining possible consumers' reactions for price changes in DSR programs [1,8,9], which are influencing the management of generating capacities at the competitive market [10], they are vital to be precisely determined. Studies published up to now base the price elasticity of electricity calculation on historic data, i.e., comparing the electricity consumption and prices in corresponding time periods (months, seasons, years).…”

Electricity used as additional medium for household supplementary space heating

“…The prices of electricity together with its delivery depend on the amount of energy consumed, because distribution network operators' tariffs contain fixed charges, which influence decreases with the increase of the electricity consumption. The unit prices presented in Table 2 have been determined for the example of tariff electricity prices and distribution rates offered to households by the Enea S.A. supplier and the Enea Operator distribution network operator and they concern the case of flat G11 tariff consumer with the output electricity consumption of 4 MWh/a, changing the settlement to the time-of-use (TOU) G12 tariff and, consequently, increasing its annual consumption to 4.379 MWh/a [5]. For the price level offered in the anti-smog G12as tariff, the consumer consumption would increase to 4.547 MWh/a [5].…”

“…On the basis of standard load profiles, it is possible to determine the increase in energy consumption for customer transitioning to a TOU tariff. The models of annual consumption increase for G11, G12 and G12as tariffs' customers were determined based on the average elasticity of demand calculated from standard load profiles of those customers published by Enea Operator, as shown in detail in [5,7]. In order to analyse in details the customers' behaviour, it is necessary to divide hourly values of energy demand into daily values, specifying peak and off-peak consumption.…”

“…On the basis of standard load profiles, it is possible to determine relatively higher energy consumption in peak periods outside the heating season for G11 customers, showing the shift of energy consumption by household appliances and increasing energy usage in the peak period in the G12 profile compared to the G11 profile during the heating season in periods of short days usually connected with low outside temperatures. The analysis presented in [5,7] has been repeated for one of the DSOs for the years 2016-2018, assuming the average consumption of the flat tariff customer for 4000 kWh [5], and the results are presented in Table 3. The values presented in the table above, calculated based on standard load profiles, show only a slight increase in energy consumption when transitioning from G11 to G12 tariff.…”

“…The average increase in electricity consumption for space heating in the off-peak period is 367.88 kWh per year. Based on the analysis of standard load profiles for G11 and G12 tariff in [5], dynamic values of price elasticity of demand for each day in a year were determined. On the basis of the values of self and cross elasticity, the forecasted energy consumption in the antismog G12as tariff for 2018 was determined.…”