Peak demand

Dynamic Pricing and Low Income Customers — Can they Co-Exist?

In regulatory proceedings involving business cases for advanced metering infrastructure, the benefits of dynamic pricing often play a prominent role.  Several studies have shown that dynamic pricing can provide substantial benefits to utilities and customers.  It does so by lowering peak demand during hours when the power system is experiencing critical conditions such as extremely high prices or threats to reliability. Hence, dynamic pricing results in avoiding expensive capacity and energy costs in the long term and lowering wholesale market prices in the short term.