understand and respond to CPP CPR (rebate) A rebate, or lump sum Participating consumers Can be an effective tool to Can be used to manage cash payment, is paid for may get cash payment to reduce demand at times wholesale price peaks reducing consumption reduce demand. of extreme pressure on during a specified time the network, potentially avoiding network failures Some studies indicate and blackouts. this is less effective at May avoid the need for reducing demand than network augmentation. CPP pricing This may be offered without retailers’ involvement, but would require a direct relationship with consumers. Locational Pricing (or Different price structures Some consumers may not Better reflects costs of availability of certain based on location within be happy at having to pay providing network. tariffs in specific the network or service more as their network is locations) area, or alternatively the upgraded when Demand management provision of demand consumers in other areas could be used as an management options have not had to pay extra alternative to expensive specific to particular in previous years upgrades of capacity in areas. some areas and may be a better way of managing network constraints Time of use pricing A TOU pricing structure provides consumers with a differentiated price that better reflects the costs of supplying electricity depending on the time of day. Higher prices are charged at times when the cost of supplying electricity is higher (generally this is at times of peak demand), and lower prices when the cost of supplying electricity is low. TOU tariffs may be set by both retailers and distributors, but only offered by the retailer in its contractual offer to small customers. Critical peak price tariffs CPP refers to a structure with a very high peak price just at times of peak network demand and/or high wholesale prices (generally only a few days a year). In return, customers are provided with discounted charges in other periods. There are a range of different implementation options that have been used for this type of tariff. Typically CPP involves a period of high peak pricing up to around 6 hours in length, which is notified to customers on this tariff between two and twenty four hours ahead so that they can to respond accordingly . Consumers would be advised of these events via SMS, email or other methods. CPP tariffs could be set by both retailers and distributors, but only offered by the retailer in its contractual offer to small customers.
understand and respond to CPP CPR (rebate) A rebate, or lump sum cash payment, is paid for reducing consumption during a specified time Participating consumers may get cash payment to reduce demand. Some studies indicate this is less effective at reducing demand than CPP pricing Can be an effective tool to reduce demand at times of extreme pressure on the network, potentially avoiding network failures and blackouts. May avoid the need for network augmentation. This may be offered without retailers’ involvement, but would require a direct relationship with consumers. Can be used to manage wholesale price peaks Locational Pricing (or availability of certain tariffs in specific locations) Different price structures based on location within the network or service area, or alternatively the provision of demand management options specific to particular areas. Some consumers may not be happy at having to pay more as their network is upgraded when consumers in other areas have not had to pay extra in previous years Better reflects costs of providing network. Demand management could be used as an alternative to expensive upgrades of capacity in some areas and may be a better way of managing network constraints Time of use pricing A TOU pricing structure provides consumers with a differentiated price that better reflects the costs of supplying electricity depending on the time of day. Higher prices are charged at times when the cost of supplying electricity is higher (generally this is at times of peak demand), and lower prices when the cost of supplying electricity is low. TOU tariffs may be set by both retailers and distributors, but only offered by the retailer in its contractual offer to small customers. Critical peak price tariffs CPP refers to a structure with a very high peak price just at times of peak network demand and/or high wholesale prices (generally only a few days a year). In return, customers are provided with discounted charges in other periods. There are a range of different implementation options that have been used for this type of tariff. Typically CPP involves a period of high peak pricing up to around 6 hours in length, which is notified to customers on this tariff between two and twenty four hours ahead so that they can to respond accordingly . Consumers would be advised of these events via SMS, email or other methods. CPP tariffs could be set by both retailers and distributors, but only offered by the retailer in its contractual offer to small customers.