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This report investigates the effects a demand based tariff would have on private electricity consumers and how it could contribute to a sustainable electrical grid. The fuse tariff that is currently used charges customers for their electricity usage and does not fully reflect the electrical grid load and thereby not the cost for the distribution system operators. A demand based tariff, that charges customers for their power peaks and promotes a change of behaviour better reflects the grid load and could lead to a more even grid distribution and a sustainable development. In light of this issue, two demand based tariffs have been constructed for the energy company Upplands Energi’s private customers’ current electricity consumption. One of the tariffs consists of a higher fixed cost and a lower variable cost and the other consists of a lower fixed cost and a higher variable cost, both leading to the same revenue för Upplands Energi. The two different demand based tariffs have been simulated and analysed, where the one with the lowest fixed cost is recommended since it gives customers higher economic incentives to change their electricity usage behaviour. It is essential that electricity retailers communicate the information of how the demand based tariff works to the customers in order to make them change their electricity behaviour to attain a sustainable grid.

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

No description available.

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.

The reduction of the impact of energy consumption is a priority issue and a major challenge that concerns every country in the world. This is a complex task that needs to be tackled from several angles in the search for areas where optimizations and savings can be made. In Sweden an electricity meter reading reform was fully implemented by 1st July 2009, including 5.2 million customers, and this created new set of circumstances in the Swedish electricity market. The main purpose of this thesis work has been to investigate the possibilities of increasing the use of remote meter readings. Two research questions have been: “How can the electricity market benefit from remote collected meter readings?” and “Where do barriers appear when utilizing meter readings?”. The work started in 2000/2001 to study Internet based applications that visualize electricity consumption patterns. Over these years the daily internet users have increased from approximately 40 % to 73 % and new markets for web-based applications have evolved. These solutions can be important in the forthcoming years as energy portals that hold new energy services. Experiences from new installations indicate that at least interested customers do submit information concerning building and household properties through internet. Still, it is challenging to enable the majority of customers to take part in these new solutions. It may therefore be important to remind customers on a regular basis in order maintain the frequency using the application and to make it habitual. Further the introduction of demand-based pricing allows electricity distribution utilities to achieve a stronger correlation between peak loads in the distribution network area and their revenues.