Based on a previous empirical study of the effect of a residential demand response program in Sala, Sweden, thisproject investigated the economic consequences of consumer behaviour change after a demand-based time ofuse distribution tariff was employed. The economic consequences of consumers were proven to bedisadvantageous in terms of unit electricity price. Consumers could achieve more electricity bill saving throughstabilising their electricity consumption during peak hours, and this way bring least compromising of theircomfort level.In order to estimate the price elasticity of the studies demand response program, a new method of estimationprice elasticity was proposed. With this method, the intensity of demand response of the demand responseprogram was estimated in terms of price elasticity. Regression analysis was also applied to find out the priceincentives of consumer behaviour change. And the results indicated that the rise in electricity supply chargehardly contributes to load reduction, while the demand-based tariff constituted an advantageous solution on loaddemand management. However stronger demand response still

Based on a previous empirical study of the effect of a residential demand response program in Sala, Sweden, this project  investigated the economic consequences of consumer behaviour change after a demand-based time of use distribution tariff was employed. The economic consequences of consumers were proven to be disadvantageous in terms of unit electricity price. Consumers could achieve more electricity bill saving through stabilising their electricity consumption during peak hours, and this way bring least compromising of their comfort level. In order to estimate the price elasticity of the studies demand response program, a new method of estimation price elasticity was proposed. With this method, the intensity of demand response of the demand response program was estimated in terms of price elasticity. Regression analysis was also applied to find out the price incentives of consumer behaviour change. And the results indicated that the rise in electricity supply charge hardly contributes to load reduction, while the demand-based tariff constituted an advantageous solution on load demand management. However stronger demand response still requires better communication with customers and more incentives other than the rise in distribution tariff.