How to Reassess Pricing Pilot Data with COVID-19 Impacts
- May 14, 2020 5:31 pm GMT
Pricing pilots are a key step for Utilities on the path to large scale alternative rate programs. The objectives of pricing pilots vary, but some of the main goals include measuring the behavioral impact of price incentives and testing rate education and marketing strategies. The results and lessons learned during the pilot are then used to design larger scale alternative rate programs.
The most common pilot changes the price from a time independent rate (same cost for every hour of the day) to a time-varying price. With a time-varying price, or Time-of-Use rate, the cost of electricity is higher during system peak demand and lower during periods of reduced system demand. The purpose of this design is to align the retail price of electricity with the wholesale price and enable customers to choose whether using electricity during peak periods is worth the higher cost.
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