Residential consumption responsiveness under time-varying pricing

Electricity pricing policy can be an effective instrument for achieving electricity conservation. Time-varying electricity pricing, in particular, can contribute to more efficient utilization of existing production capacity, allowing for build-up of additional capacity to be postponed. Time differentiated prices should provide an economic incentive to customers to modify consumption patterns by reducing peak demand and shifting electricity consumption from peak to off-peak periods. In this work, the effectiveness of time-varying tariffs on residential prosumers, was investigated. The results indicated that the percentage of total consumption measured during peak hours was reduced by 3.19%, 1.03% and 1.40% for the summer, middle and winter season respectively. Additionally, a regression analysis of the hourly consumption data led to the conclusion that the developed Time of Use (ToU) tariff structure was a major driver in persuading the prosumers to change their energy behaviour.