Efficient Buyer Groups With Prediction-of-Use Electricity Tariffs

Abstract : Current electricity tariffs do not reflect the real costs that a customer incurs to a supplier, as units are charged at the same rate, regardless of the consumption pattern. In this paper, we propose a prediction-of-use (POU) tariff that better reflects the predictability cost of a customer. Our tariff asks customers to pre-commit to a baseline consumption, and charges them based on both their actual consumption and the deviation from the anticipated baseline. First, we study, from a cooperative game theory perspective, the cost game induced by a single such tariff, and show customers would have an incentive to minimize their risk, by joining together when buying electricity as a grand coalition. Second, we study the efficient (i.e., cost-minimizing) structure of buying groups for the more realistic setting when multiple, competing POU tariffs are available. We propose a polynomial time algorithm to compute the efficient buyer groups, and validate our approach experimentally, using a large-scale data set of domestic consumers in the U.K.
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https://hal-cea.archives-ouvertes.fr/cea-01917811
Contributor : Marie-France Robbe <>
Submitted on : Friday, November 9, 2018 - 4:59:53 PM
Last modification on : Saturday, June 8, 2019 - 2:20:04 PM

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Valentin Robu, Meritxell Vinyals, Alex Rogers, Nicholas Jennings. Efficient Buyer Groups With Prediction-of-Use Electricity Tariffs. IEEE Transactions on Smart Grid, Institute of Electrical and Electronics Engineers, 2018, 9 (5), pp.4468 - 4479 ; 7835716. ⟨10.1109/TSG.2017.2660580⟩. ⟨cea-01917811⟩

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