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Title A Quarterly Journal of Operations Research (2007)
Edition 1
Call Number
ISBN/ISSN 10288-007-0056-2
Author(s) Chefi Triki
Antonio Violi
Subject(s) Electricity market
Pricing methods
Stochastic Programming
Classification
Series Title
GMD Electronic Journal
Language English
Publisher Physica Verlag, An Imprint of Springer-Verlag GmbH
Publishing Year 2007
Publishing Place Physica Verlag
Collation
Abstract/Notes This paper aims at defining a dynamic and flexible tariff structure for a distribution
company that protects the retail consumers against the excessive fluctuations
of the wholesales market prices. We propose a two-stage pricing scheme that sets in
a first-stage a time-of-use tariff that is corrected later by a dynamic component once
the real-time demand has been observed. A personalized tariff scheme may be offered
by a distribution company to each dynamic customer by allowing him to choose the
appropriate robustness level expressed in terms of variability between the first and
the second-stage decisions. The arising limited recourse model has been tested on
realistic test problems, by using a slight modification of a recently proposed interior
point solution framework.
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