Investigating the increase in electricity prices and its alignment with global standards on the modification of the household consumption pattern

Document Type : Original Article

Authors

1 Specialized Center for Innovation and Development of Energy Consumption Management Technology, Niro Research Institute, Tehran, Iran

2 PhD in Oil and Gas Economics, Allameh Tabatabai University, Tehran, Iran

3 Head of the Specialized Center for Innovation and Development of Energy Consumption Management Technology, Niro Research Institute, Tehran, Iran

4 General Manager of Strategic Program and Regulation Office, Renewable Energy and Electricity Efficiency Organization, Tehran, Iran

Abstract

This research examines the effect of increasing the price of electricity for high-consumption household subscribers and bringing it up to global standards on the modification of the consumption pattern. The results show that the inefficient pricing system and the high growth of electricity consumption in Iran have created serious challenges for the electricity industry. In this regard, the increase in electricity tariffs for high-consumption subscribers has been considered as an economic solution. In this study, the data of high-consumption household subscribers in 1401 was used and the effects of different tariff increase scenarios on the income of the Ministry of Energy and changes in consumer behavior were investigated. became Unlike previous researches that only focused on estimating electricity demand or investigating price elasticity, this research has investigated the effect of electricity price increase and compliance with global standards on modifying the consumption pattern of household electricity subscribers. The results show that the increase in tariffs will lead to a significant reduction in electricity consumption, which in turn can lead to a reduction in network load. Also, the income from this tariff increase can be used in the optimization of the electricity industry equipment. Based on the scenarios, the Ministry of Energy's income from high-consumption subscribers will increase significantly, and this will provide opportunities to improve the infrastructure of the electricity industry. If the price of electricity increases to levels close to global prices, subscribers will reduce their consumption below the model by consuming more than 1.5 times the model. These changes show the positive reaction of demand to price changes and price policies.

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Main Subjects

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Journal of sustainable Energy Systems
Volume 4, Issue 1
January 2025
Pages 27-41

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