A literature review on dynamic pricing of electricity

Goutam Dutta () and Krishnendranath Mitra ()
Additional contact information
Goutam Dutta: Indian Institute of Management
Krishnendranath Mitra: University of Calcutta

Journal of the Operational Research Society, 2017, vol. 68, issue 10, 1131-1145

Abstract: Abstract Revenue management and dynamic pricing are concepts that have immense possibilities for application in the energy sector. Both can be considered as demand-side management tools that can facilitate the offering of different prices at different demand levels. This paper studies literature on various topics related to the dynamic pricing of electricity and lists future research avenues in pricing policies, consumers’ willingness to pay and market segmentation in this field. Demand and price forecasting play an important role in determining prices and scheduling load in dynamic pricing environments. This allows different forms of dynamic pricing policies to different markets and customers depending on customers’ willingness to pay. Consumers’ willingness to pay for electricity services is also necessary in setting price limits depending on the demand and demand response curve. Market segmentation can enhance the effects of such pricing schemes. Appropriate scheduling of electrical load enhances the consumer response to dynamic tariffs.

Keywords: dynamic prices; demand and price forecasting; demand elasticity; willingness to pay; market segmentation; scheduling of load (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (61)

Downloads: (external link)
http://link.springer.com/10.1057/s41274-016-0149-4 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jorsoc:v:68:y:2017:i:10:d:10.1057_s41274-016-0149-4

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/41274

DOI: 10.1057/s41274-016-0149-4

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald and Jonathan Crook

More articles in Journal of the Operational Research Society from Palgrave Macmillan, The OR Society
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().