"A lot of households believe the price of electricity to be significantly higher than it really is and that the cost of, for example, using a kitchen appliance higher than it is."

The fact that electricity often is less costly than we believe could have the opposite effect on the desire for more flexible consumers. It could in fact mean that consumers use more electricity while at home and therefore amplify peak demand in the power system that occurs when get home and wash, cook, do dishes and so on. An increased income often means that people are inclined to use more electricity while at home. – When our income increases, we tend to use more electricity whilst already consuming, especially mornings and evenings, says Runar Brännlund (my translation) in Second Opinion August 19th 2015.
This could stand in the way of future plans on the consumer flexibility as a means to tackle intermittent electricity that for example stems from wind power that depends on windy weather.

Another issue derives from consumers with high electricity consumption, they have a tendency to choose fixed price contracts to decrease the chance of unpleasant surprises. – This is about their risk aversion says Runar Brännlund, the consumers wants to create predictability and reduce risk of getting a surprise when the electricity bill arrives (my translation).

Read the entire article "Forskning om kundflexibilitet: Storanvändaren vill ha fast pris" (Research on customer flexibility: High consumers want a fixed price) on Second Opinion, published August 19th 2015 (only in Swedish).

The article is based on the second part of the Ei (Swedish Energy Market Inspectorate) report: "An electricity market in transition – demand flexibility and preference heterogeneity".

Read also the first part: "An electricity market in transition - Is consumer flexibility for sale, or even for real?"

Coming events

Show Full Calendar