Effective and Equitable Adoption of Opt-In Residential Dynamic Electricity Pricing

Severin Borenstein

Review of Industrial Organization, 2013, vol. 42, issue 2, 127-160

Abstract: Time-varying retail electricity pricing is very popular with economists, but has little support among regulators and consumers. I propose an opt-in time-varying residential pricing plan that would be equitable to both customers who opt in and those who don’t. Low-income households would, on average, see almost no change in their bills under time-varying pricing, while low-consumption households would see their bills decline somewhat and high-consumption households would see their bills rise. Most importantly, I show that the opt-in approach is unlikely to increase the flat rate charged to other customers by more than a few percentage points. Copyright Springer Science+Business Media New York 2013

Keywords: Real-time pricing; Critical-peak pricing; Tariff design (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (50)

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DOI: 10.1007/s11151-012-9367-3

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