Andersen FM

Borenstein S

Capion K

Danish Ministry of Climate, Energy and Building

Danish Ministry of Taxation

Dansk Energi

Ecofys

Energinet.dk

Energinet.dk and Dansk Energi

He X

Jansen M

Kasikci I

Kwon PS

Lyndrup M

Moe M

NordREG

O'Connell N

Pfeifroth P

Togeby M

Torstensson D

Dynamic pricing of retail electricity, as opposed to the widely applied average pricing, has often been proposed to enhance economic efficiency through demand response. The development of variable production from renewable energies and expectations about the installation of heat pumps and electric vehicles has now reinforced interest in flexible demand and dynamic pricing. With a roll-out of smart metering one important technical hurdle is going to be cleared, and dynamic retail pricing may soon become an eligible option for many households. We quantify the potential incentives to adopt new pricing schemes using exemplary Danish data. Until now, limited activity of household consumers on retail markets indicates that switching supplier or contract is perceived costly. We apply the concept of switching costs to explain this hesitant behavior, and use it to estimate a threshold level based on recent observations in the Danish market. We calculate potential savings from dynamic pricing and show how the choice of electricity taxation technique may hamper or enhance potential benefits. In the light of switching costs, our results suggest that the combination of smart meter roll-out and dynamic pricing offerings might be insufficient to convince the majority of households to switch contracts and become active in response to prices, unless they hold a substantial flexibility potential. Dynamic taxation, even if applied to parts of the levies, could contribute significantly to inducing flexible consumption

Katz, Jonas

Kitzing, Lena

Schröder, Sascha Thorsten

Møller Andersen, Frits

Morthorst, Poul Erik

Stryg, Morten

Online Research Database In Technology

Household electricity consumers’ incentive to choose dynamic pricing under different taxation schemes:Electricity consumers' incentive to choose dynamic pricing

Jonas Katz

Lena Kitzing

Sascha T. Schröder

Frits Møller Andersen

Poul Erik Morthorst

Morten Stryg

Crossref

Wiley Interdisciplinary Reviews Energy and Environment

Household electricity consumers’ incentive to choose dynamic pricing under different taxation schemes

http://orbit.dtu.dk/ws/files/138593154/Katz_et_al_ACCEPTED_VERSION_Household_electricity_consumers_incentive_to_choose_dynamic_pricing_under_different_taxation_schemes.pdf

Household electricity consumers’ incentive to choose dynamic pricing under different taxation schemes

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Online Research Database In Technology

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