Multi-quality Electricity Pricing Method Based On Risk Management

In power market, power quality (PQ) problem is attached more and more importance to and the different customers need the power with different quality. So it is inclined for the utility to provide power with multi-quality and to price power according to quality. In this paper, the PQ characteristics are discussed, and a PQ service pricing method based on risk management is proposed. This method divides the fee into treatment expense and stop loss premium, and makes the fee more clear and reasonable. Customer chooses the optimal PQ level according to the quality cost of itself, and reduces the extra PQ risk by stop loss insurance. The less premium in fair premium can prompt the customer to take part in the insurance. Calculation result of an example shows that the method can achieve the supply of power with multi-quality and pricing according to quality, lower the PQ risk of customers, and eventually improve the PQ level of entire power system.