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How much shift in demand? Findings from a field experiment in Germany

: Schleich, Joachim; Klobasa, Marian

Lindström, T. ; European Council for an Energy-Efficient Economy -ECEEE-, Paris:
Rethink, renew, restart. eceee 2013 Summer Study. Proceedings : 3-8 June 2013, Belambra Les Criques, Toulon/Hyères, France
Stockholm: ECEEE, 2013
ISBN: 978-91-980482-2-3 (Print)
ISBN: 978-91-980482-3-0 (Online)
European Council for an Energy-Efficient Economy (ECEEE Summer Study) <2013, Toulon>
Conference Paper
Fraunhofer ISI ()
smart metering; demand response; household electricity; elasticity; electricity consumption

In this paper we evaluate the effects of time of use (TOU) pricing in a field experiment in Germany on residential peak and off-peak demand, which involves more than 1,500 households in the TOU treatment and the control group. The TOU experiment lasted for six months and the ratio of peak-to off peak prices was 177 %. Results from econometric difference-in-difference analyses suggest that TOU pricing corresponds to average percentage reductions in peak-demand of 6 % to 7 %, for a household in the TOU treatment group. In comparison, the TOU tariff was not found to affect off-peak demand. Households mainly respond to TOU tariffs by shaving peak demand, but not by shifting demand from peak periods to off-peak periods. Thus, TOU pricing also lowers total electricity use. Our findings further suggest that there is no difference in the effects of TOU pricing between weekdays and weekends. Finally, we find no differences in the effectiveness of TOU pricing over time.