Abstract
In flat-tariff structures we are free to use all of our electronic devices at the same per unit price throughout the day. Due to which, we fail to get the true cost of electricity generation and distribution. Dynamic pricing is a solution to this problem, where a consumer is charged various prices depending upon the demand response curve. Recent researches and Implementation of dynamic pricing of electricity is mostly restricted to block pricing in which the per unit rate of electricity increases or sometimes decreases after the consumption of a certain amount (block) of electricity. Since electricity consumption of every consumer is not same but still the impact of increased price due to load shifting during peak hours affects each consumer equally. Hence we are proposing a new model of dynamic pricing where the increased price will be shared only among those users, who actually participate in unbalancing the demand supply curve, and not the one, whose electricity usage is bare minimum or below average.