Abstract
The response of a non-linear mathematical model is analyzed for the calculation of the optimal prices for electricity assuming default customers under different scenarios and using five different mathematical functions for the consumer response: linear, hyperbolic, potential, logarithmic and exponential. The mathematical functions are defined to simulate the hourly changes in the consumer response according to the load level, the price of electricity, and also depending on the elasticity at every hour. The behavior of the optimization model is evaluated separately under two different objective functions: the profit of the electric utility and the social welfare. The optimal prices as well as the served load are calculated for two different operation schemes: in an hourly basis and also assuming a single constant price for the 24 h of the day. Results obtained by the optimization model are presented and compared for the five different consumer load functions. (C) 2006 Elsevier B.V. All rights reserved.