Voltage regulation and energy consumption in electricity markets

Voltage regulation has been employed for years to keep supply voltage within the limits determined by standards. In competitive electricity markets, voltage control can be used to adjust demand to varying prices and increase revenue of a supply company. The paper discusses effect of voltage regulation on electrical equipment and its energy consumption. The field tests carried out in three households, show high voltage levels resulting in large energy consumption. The paper addresses economic and legal aspects of voltage regulation in competitive electricity markets.