Electricity Price Decision Model And Management Strategy Based On PDSM

DSM is a utility financed programme for total energy savings approach to reduce peak and base loads. It introduces a new element into the planning framework by allowing for a deliberate intervention to influence customer use of electricity in order to alter the system load shape. The resulting efficiency gains 'produce' electricity for the power system that can be used by others and take the place of new power plants.As the most important and direct energy source, there is much space for electricity saving in its generation, transmission and application. Moreover, there are many problems exist in generation, transmission, and using in electricity industry, such as, proportion of thermal power generation is too much, severe environment pollution; increasing difference between peak and valley yearly; deceasing load rate yearly, and so on. To solve those problems, Demand Side Management (DSM for short).must be developed.The paper discusses the origination, meanings, and practice of DSM, shows the main questions of the development of DSM. Electricity price is a key point in research and development of DSM. Development of DSM requires the establishment of a price system fits for DSM. The paper analyzes the development history and problems of DSM in China, the requirements for price system; studies the demand sides' influence on power price that takes standing on both supply sides and demand sides into account; analyzes several modes of price system in terms of DSM; propose a time-of-use price model based on users response and satisfaction, the model is approved to be effective. At the end of the paper, the management and application method were discussed.