Optimization Model For The Design Of Tiered Pricing For Household Electricity In China

The implement of tiered pricing for household electricity is a significant move of power reform, and will make up for the shortcomings of the single price which is not conducive to the social equality, energy saving and emission reduction, and the broken of price bottleneck. Tiered price will improve the average tariff level of residential electricity and lighten the burden of industry and commerce supplying subsidy by high tariff. Besides, the implement of tirered pricing will raise average price of the electricity consumed by high-income people and encourage them to make reasonable use of electricity, which will bring benefit of energy saving and emission reduction. Lastly, to a certain extent, the income from the implement of tiered pricing will release the power company's financial pressure caused by on-grid of new energy and upgrading of electricity grid, etc.The paper put forward an optimization model for the design of tiered pricing for household electricity, based on the factors including the residents'tolerance, residents'demand of electricity, electricity supply cost of the power company, seasonal changes of residential electricity demand, the scarcity of energy, equity of energy use, timeliness of price adjustment and so on. Firstly, the suitable tiered level for certain region is determined with the method of Rank-Sum Ratio; Secondly, responses of the residents to the tirered electric quantity are studied, with round-robin algorithm, the best setting of tiered electric quantity that make the dissatisfaction of the residents lest is seeked out, and timing modified model is built. At last, based on the constraints that the benefits of the residents and electric power company are balanced, the tiered electric pricing optimization model of energy conservation direction is created. The case study verifies that the method has superior practicability and is beneficial to formulate rational tiered pricing policy, and the energy conservation value of tiered pricing for electricity is well displayed.