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Tariff feature. Implied customer model tariff choice capability. Difficulty of realization. tiered rates, in which customers pay/receive one rate for a portion of usage (up to 20 kWh/day, for example), and a different rate for the remainder.

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Tariff feature

Implied customer model tariff choice capability

Difficulty of realization

tiered rates, in which customers pay/receive one rate for a portion of usage (up to 20 kWh/day, for example), and a different rate for the remainder

  • Customer models need to be able to evaluate the cost of its optimally adapted consumption exceeding the limit

Easy/Moderate

Customer models will have to evaluate over the lifetime of the contract how

time-of-use rates;weekday/weekend rates

  • Customer models need to be able to evaluate the cost of its optimally adapted consumption profile under a TOU tariff

Easy

two-part tariffs (fixed daily fee plus usage fee);signup payments in either direction (fee or bonus)

  • Customer models need to be able to calculate a total contract time cost (similar to TCO)

  • If we want to capture behavioral aspects of signup fees (i.e. inappropriate dealing with sunk cost) this needs to be incorporated as well

Easy/Moderate

Robust behavioral models may be somewhat challenging

early withdrawal penalties

  • Customer models need to be able to evaluate the “risk” of a better tariff showing up

  • Customer models need to be able to assess whether the advantage of a new tariff exceeds the withdrawal fee

Moderate/challenging

The risk evaluation may end up in customers being trapped in tariffs too often or hardly anytime

  • Customer models need to evaluate the “risk”, magnitude and direction of rate changes and the associated cost over the lifetime of the contract

  • Customer models need to track some kind of variable pricing reputation of brokers

Very Challenging

Customer models will have to keep track of dynamic rate decisions by brokers to properly punish them in a new tariff choice phase. Moreover there needs to be word of mouth to spread bad broker behavior otherwise they could pick customer pockets one by one.

variable rates with minimum and maximum values, estimated mean values, and notice intervals


Tariff feature

Implied customer model consumption choice capability

Difficulty of realization

tiered rates, in which customers pay/receive one rate for a portion of usage (up to 20 kWh/day, for example), and a different rate for the remainder

  • Customer models should be able to curtail daily load by shedding or shifting to a lower load day

Moderate

Multi-day power balancing more involved than realizing 24h balancing – although customer models could think in 48h / 72h blocks

time-of-use rates;weekday/weekend rates

  • Customer models should be able to curtail peak loads by shedding or shifting to off-peak

Easy/Moderate

Intra-day power balancing easy but shift from weekday to weekend day probably more involved (see above)

two-part tariffs (fixed daily fee plus usage fee);signup payments in either direction (fee or bonus)

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early withdrawal penalties

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  • Customer models need to react to rate changes (depending on notice time this may be interrupting the “normal” consumption decision)

  • Customers need to form some kind of expectation over future rate developments to “schedule” loads beyond the notice time

Moderate/Challenging

If changes are too short notice the consumer may need to schedule activities forming expectations over future changes

Shifting loads across days is difficult anyhow this requires adding an evaluation of uncertain prices

Variable rates with minimum and maximum values, estimated mean values, and notice intervals


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