Distributional Effects of Dynamic Pricing for Responsive Electricity Demand (DEePRED)
Time of Use (ToU) tariffs offer significant potential benefits to the system by enabling responsive electricity demand and reducing peaks. For example, they could reduce the need for new generation and network capacity. However, the impact of more cost-reflective pricing will vary between consumers. In particular, those who consume electricity at more expensive peak periods, and who are unable to change their consumption patterns, could end up paying significantly more.
Understanding the distributional effects of ToU tariffs becomes vital to ensuring affordability of energy bills, at the same time as making demand more flexible. Whilst there is significant research on fuel poverty in relation to aggregate level of consumption of electricity, little is known about the effects of dynamic tariffs on different socio-demographic groups. DEePRED will fill this gap.