Dynamic tariffs: theory of utility-consumer interaction

The general theoretical models of dynamic tariffs, such as spot pricing, are extended to include the issues of optimal response of industrial consumers and the effect of large-scale penetration of these tariffs on the utility load curve. Applications-oriented, theoretical consumer and utility models are integrated for the purpose of establishing an overall systems approach to the behavior and interaction of the participants in a dynamic tariff environment. A systematic analysis of the effect of significant consumer response on the system load curve is undertaken. A methodologically sound approach to system load and price forecasting is presented