An adaptive classification for tariff selection

In the newly privatised electricity supply industry, integrated resource planning (IRP) approaches should be the basis of long term planning. In the IRP paradigm demand side management (DSM) is accepted as a resource option. Changing the shape of the demand profile is equally weighted with the more traditional resources such as purchase contracts, installing generation, increasing efficiency or extending the lifetime of existing equipment. Maximising revenue in such an approach will depend on how closely the tariffs can be sculptured to adapt to changing load profiles in response to DSM. Present day tariff structures such as time of day or time of use are not adaptive enough to be revenue efficient. A simple robust and efficient tool for adaptive optimisation of tariffs is essential for today´s tariffs managers