Simulation of a flexible tariff scheme (TOU) in Chile: a win win situation.
Revista : Proceedings of the Institute for Operations Research and the Management Science (INFORMS) Annual MeeTipo de publicación : Conferencia No A*
Abstract
A flexible tariff scheme could allow making better use of the generation and transport electricity chain of energy in the power system in Chile. Nowadays, in this country, the residential sector faces a fixed pricing scheme. It does not include the increased cost of the system produced by the high variability of the load curve characteristic. On the other side, a flexible tariff scheme, like TOU, that are designed to minimize total system cost, it may cause losses in distribution companies (DISCOs), generating their opposition. In this situation we have simulated the effects it could have on the beneficial of DISCOs a new TOU system for electricity consumption in Chile. The simulation was performed considering three blocks of tariff, where optimal prices were obtained in order to maximize total income of DISCOs. The TOU designed would allow obtaining a win-win situation among DISCOs and consumers.