Dynamic price structures and consumer load reaction

With the forthcoming reorganisation of the electric power industry in the UK, great interest is being shown in the likely relationship between suppliers and consumers in the new market scenario for energy sale and purchase. In an effort to improve utility economies, it is expected that greater use will be made of load management techniques, both direct and indirect. The use of dynamic or spot prices offers the means which is most consistent with market economics while still providing the utility with a Load Management alternative whenever necessary. The author examines the analysis and development of appropriate electricity tariffs and models for use within indirect load control strategies. These strategies use price messages to indicate to the consumer the actual costs and implications of his consumption of energy at the time it is required. In addition, consumer load models are presented. These, along with the price models, are used to estimate the optimal operating strategies of consumers