Tariffs and load management: A post privatization study of the U.K. electricity supply industry

Journal Article · Mon May 01 04:00:00 EDT 1995 · IEEE Transactions on Power Systems

DOI:https://doi.org/10.1109/59.387958· OSTI ID:82717

Ram, B ^[1]

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1. Planning Commission, New Delhi (India). Energy Policy Div.

A utility can influence its customers` load by providing financial incentives through the prices charged for electricity at different times of use. By designing discriminatory time of use tariffs in which the price of electricity corresponds to the marginal cost of supply, a utility provides appropriate signals to the customer to increase consumption of electricity at off-peak periods. The utilization of off-peak electricity results in the improvement of system load factor which is an indicator for the utilities to decide to defer investment in new generating and transmission capacity. The need to utilize off-peak electricity provides ample justification for the investigation of the determinants of the off-peak demand functions, customers` response to discriminatory prices and their implication to system load management. Using the econometric approach, this paper reports a study of the British experience in the field of tariffs and load management in the case of the privatized Electricity Supply Industry (ESI). The results of this study may be applicable to the Regional Electricity Companies in the U.K. The utilities in several developing countries may find this study relevant, if they decide to restructure their industry for increasing efficiency and tariff for implementing load management (LM) instead of arbitrary load shedding.

• OSTI ID: 82717
• Report Number(s): CONF-940702--
• Journal Information: IEEE Transactions on Power Systems, Journal Name: IEEE Transactions on Power Systems Journal Issue: 2 Vol. 10; ISSN 0885-8950; ISSN ITPSEG
• Country of Publication: United States
• Language: English

Related Subjects

24 POWER TRANSMISSION AND DISTRIBUTION
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
LOAD MANAGEMENT
MARGINAL-COST PRICING
OFF-PEAK POWER
PEAK-LOAD PRICING
POWER SYSTEMS
RATE STRUCTURE
UNITED KINGDOM