Tariff Menus to Avoid Rebound Peaks: Results from a Discrete Choice Experiment with Swiss Customers

Abstract

While automation helps to increase load-shifting, the combination of automation with time-of-use (TOU) or critical-peak prices (CPP) may lead to rebound peaks at the beginning of low-tariff periods which may exceed the original peak. Using a discrete choice experiment with a representative sample of 696 Swiss consumers, we find that a tariff menu including (i) a flat price with direct load control (DLC) and (ii) a time-of-use tariff without direct load control could avoid this problem. The majority (57%) of mostly younger customers, which could be interested in automation would likely sign up for a DLC with flat prices, while the remaining customers would either chose a TOU tariff with manual load control (28%) or avoid any form of load-shifting incentives (15%).

Keywords

• demand response
• demand side management
• choice experiment
• direct load control
• dynamic electricity tariff
• time-of-use tariff