Journal of Electrical Engineering and Technology

The Korean Institute of Electrical Engineers (대한전기학회)
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A Value-Based Real Time Pricing Under Imperfect Information on Consumer Behavior

  • Kim, Bal-Ho H. (School Electronic and Electrical Engineering, Hongik University)
  • Published : 2009.03.01
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Abstract

One of the major challenges confronting a multiservice electric utility is the establishment of the right prices for its services. The key objectives of particular pricing schemes are reasonableness of company earnings, economic efficiency, the responsiveness of supply and of the allocation of sources to the desires of consumers, and maintenance of some degree of competition. This paper proposes a value-based pricing mechanism amenable to the current deregulation situation in electricity market allowing service differentiation. The proposed pricing mechanism can be implemented in a nodal auction model, and can also be applied to direct load control.

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