FSR Global | Policy Brief
Dynamic retail electricity tariffs : choices and barriers
21 April 2020
BY: Pradyumna Bhagwat, HADUSH Samson Yemane
Highlights: • Sixteen international case studies on the implementation of dynamic retail electricity tariffs are reviewed to identify the design and implementation choices that have to be made when introducing such tariffs. • Two primary design choices are identified: 1) the time block length, which means the number of distinct tariff levels; and 2) the price periodicity, which is the time interval between revisions of the tariff. Time-of-use tariffs are widely used and they can be the first step in applying dynamic tariffs before moving to more advanced approaches such as real-time pricing. • Two types of implementation choices are identified: 1) those made by the regulator regarding regulatory interventions to protect vulnerable customers; and 2) those made by consumers regarding whether to opt for a dynamic tariff and the selection of a suitable dynamic tariff option. • The implementation of dynamic retail tariffs depends on the availability of physical and information and communication technology (ICT) infrastructure, the maturity of the power market design and consumer behaviour. • Before implementing dynamic tariffs, it is essential to conduct a careful cost-benefit analysis of the effects on consumers, suppliers and the overall implementation system. Moreover, enabling innovative business models and technologies will help to derive the maximum benefit from the application of dynamic tariffs.
logo cadmus Read it on Cadmus Download in open access

LATEST FSR PUBLICATIONS

Other
On 14 January 2021, members of the European Parliament’s (EP) committee on Artificial Intelligence in a Digital Age (AIDA) consulted with experts from the European University Institute (EUI) on topics [...]
Book
Natural Gas Price Controls starts with an estimation of the benefits of price liberalisation vs. regulation, based on the evolution of European markets. However, the focus of the book is [...]
Other
European aviation has been confronted with serious capacity challenges and high levels of delay, in particular, during the two years (2018-2019) leading up to the onset of COVID-19. The pandemic [...]
Working Paper
Peer-to-peer and peer-to-X open a new world of transactions in the electricity sector. This world is characterised by the active involvement of new players, both small in size and non-professional [...]
Other
This study seeks to answer a simple question: will we have enough renewable electricity to meet all of the EU's decarbonisation objectives, and, if not, what should be the priorities [...]
Working Paper
This study seeks to answer a simple question: will we have enough renewable electricity to meet all of the EU's decarbonisation objectives, and, if not, what should be the priorities [...]

Join our community

To meet, discuss and learn in the channel that suits you best.

scroll

top