Efficient buyer groups with prediction-of-use electricity tariffs

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Title: Efficient buyer groups with prediction-of-use electricity tariffs
Author(s): Robu, V
Vinyals, M
Rogers, A
Jennings, N
Item Type: Journal Article
Abstract: Current electricity tariffs do not reflect the real costs that a customer incurs to a supplier, as units are charged at the same rate, regardless of the consumption pattern. In this paper, we propose a prediction-of-use (POU) tariff that better reflects the predictability cost of a customer. Our tariff asks customers to pre-commit to a baseline consumption, and charges them based on both their actual consumption and the deviation from the anticipated baseline. First, we study, from a cooperative game theory perspective, the cost game induced by a single such tariff, and show customers would have an incentive to minimize their risk, by joining together when buying electricity as a grand coalition. Second, we study the efficient (i.e., cost-minimizing) structure of buying groups for the more realistic setting when multiple , competing POU tariffs are available. We propose a polynomial time algorithm to compute the efficient buyer groups, and validate our approach experimentally, using a large-scale data set of domestic consumers in the U.K.
Publication Date: 1-Sep-2018
Date of Acceptance: 1-Jan-2017
URI: http://hdl.handle.net/10044/1/53401
DOI: https://dx.doi.org/10.1109/TSG.2017.2660580
ISSN: 1949-3061
Publisher: Institute of Electrical and Electronics Engineers
Start Page: 4468
End Page: 4479
Journal / Book Title: IEEE Transactions on Smart Grid
Volume: 9
Issue: 5
Copyright Statement: © 2017 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.
Keywords: Science & Technology
Engineering, Electrical & Electronic
Electricity tariffs
cooperative game theory
coalition formation
collective switching
demand forecasting
0906 Electrical And Electronic Engineering
0915 Interdisciplinary Engineering
Publication Status: Published
Open Access location: http://ieeexplore.ieee.org/document/7835716/
Online Publication Date: 2017-01-27
Appears in Collections:Faculty of Engineering
Faculty of Natural Sciences

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