January 18, 2009

An Analysis of a Demand Charge Electricity Grid Tariff in the Residential Sector

by Andreas V. Stokke, Gerard L. Doorman and Torgeir Ericson

- This paper analyses the demand response from residential electricity consumers to a demand charge grid tariff. The tariff charges the maximum hourly peak consumption in each of the winter months January, February and December, thus giving incentives to reduce peak consumption. We use hourly electricity consumption data from 443 households, as well as data on their network and power prices, the local temperature, wind speed and hours of daylight.

Stokke, A.V., G.L. Doorman and T. Ericson (2009). "An Analysis of a Demand Charge Electricity Grid Tariff in the Residential Sector." Discussion Papers 574 - Statistics Norway, Jan 2009.