Simulation Of Time-of-use Pricing In Urban Natural Gas Market With Cross Price Elasticity

Under the background of natural gas price reform,ladder pricing and time-of-use pricing method have become more important and useful.Many provinces have begun to implement the ladder price for residential users.Practice has proved that the ladder price plays an important role in saving energy and easing supply pressures,etc.However,with the increase of demand from more areas and larger amount of consumers,the running pressure of city natural gas network becomes larger,urge to implement a method to narrow the load difference between the peak and the valley period.Combining with the practical experience of the power market at home and abroad,it is not difficult to find that TOU pricing is a good way to relieve the problem in natural gas industry.In this paper,I adopted the method of empirical analysis and literature research.Based on the simulation of demand response model and time-of-use pricing model simulation in city natural gas market,this thesis discusses the effects of changes in natural gas price on the load difference between peak and valley period,makes it clear that the effects can reduce the difference of peak and valley load,and analyzes the feasibility of implementing the TOU pricing method in different cities.According to the simulation results,the TOU pricing can reduce the load difference between peak and valley period.Further more,the economic benefit of industrial users increase at the same time,but it will harm the interest of natural gas company or reduce its original income.The results show that time-of-use pricing can narrow the load difference between peak and valley period under a certain price elasticity,but different cross price elasticity will have a impact on the efficiency of the implementation of time-of-use pricing.TOU pricing method want to get the supports from the parties in the market,and achieve Pareto optimal or increase the total social benefit,need further research to price elasticity of urban natural gas,government subsidies,and cost savings.