Electricity Pricing Method Considering Power Quality Factors

With the increasing development of power market and growing attention to PowerQuality (PQ) problems, the quality factors are inevitable to be considered when makingprice of electricity. In this paper, the market environment and technical conditions arediscussed, then a PQ service pricing approach based on differential pricing is proposed:reasonably dividing the PQ service market;considering the customers' willingness topay;introducing the customers' incentive mechanism as the constrains;and maximizingthe total profit of power supply company;proposing a preliminary assumption for theeconomic compensation to customers suffering PQ accidents. This method fullyconsiders the improvement and expense costs of PQ, as well as the response ofcustomers. Calculation results of the IEEE RBTS-Bus 3 test system by using theproposed method show that it can reasonably realize the principle of "higher quality,higher price", and can be an effective way of pricing electricity according to its quality.