Rewarding consumers for flexibility in their energy use is assuming greater importance in energy policy making, although demand response and off peak pricing are yet to become the new normal.
In his talk, Dr Ahmad Faruqui, a principal with The Brattle Group based in San Francisco, California, discusses some of the harms being perpetuated by current pricing approaches. Further, he discusses how these harms can be ameliorated by moving towards network pricing that enables consumers to contribute to reducing future investment in additional capacity.
Dr Faruqui discusses how other jurisdictions have successfully made the transition, including the evidence on how customers have responded to the new pricing structures. By showcasing best practice Dr Faruqui will provides networks, retailers and regulators a toolkit for moving towards pricing that optimises consumers’ energy use behaviour.
Presentation slides are available here and you can watch the full video presentation below.