Approach on pricing electricity for large consumers based on hedonic price model

With the start of trial operation of direct purchasing electricity for large consumers in China, the method on how to price electricity is of vital theoretical and practical significance. Hedonic electricity pricing method is proposed to calculate the implicit prices of different characteristics of electricity. Based on the proposed model, the prices of electricity production cost, power quality and reliability characteristics are obtained. Comparing with the two-part pricing method, the hedonic electricity price model uses multiple electricity characteristics to make the electricity purchase price, instead of using single electric energy. Numerical examples show that the proposed approach can make purchase price more reasonable and fair.