Consumer perspectives on demand-based electricity tariffs: Lessons from a Swedish pilot study

A. Nilsson and C. Bartusch

Utilities Policy, 2025, vol. 96, issue C

Abstract: Demand-based electricity tariffs are promoted as a tool to enhance demand flexibility by incentivizing households to reduce peak consumption. However, their effectiveness depends on broader consumer engagement. Based on 15 interviews with Swedish households in a pilot program, this qualitative study explores how consumers understand and respond to such tariffs. Results show that demand-based tariffs primarily suit a small group with the knowledge and resources to engage effectively. Contrary to common assumptions, limited engagement is not only due to weak incentives but also diverse barriers. The study warns that these tariffs risk reinforcing energy injustice by favoring already advantaged consumers.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:96:y:2025:i:c:s0957178725001183

DOI: 10.1016/j.jup.2025.102003

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