Impacts of the structures of electricity and gas tariffs on the rational use of energy

Theoretically, optimal tariff structures should reflect long-run marginal costs. An international- comparison shows considerable differences in the structures of energy prices, which can only be explained by a different philosophy of price setting. Examples show the influence of tariff structures on the profitability of rational energy use. In Germany field experiments were started in 1989 with time-of- use electricity rates for residential customers dependent on marginal costs. First simulations show a considerable potential for loadshifting in the residential sector.