Conference Agenda

Dynamic pricing of electricity is considered as an important demand response tool to improve economic efficiency and provide choice to consumers. It also sends price signals for energy conservation and promotion of variable renewable generation sources. While the provision of dynamic electricity pricing (DEP) option for retail electricity consumers is becoming more widespread, the actual outcomes depend on multiple factors that are both internal and external to the individual households. In this study, we explore the heterogeneities in adoption preferences of DEP by residential consumers based on original survey data from 1225 Irish households. Our empirical analysis is in two parts: first, we identify latent behavioural factors underlying stated preference to switch from existing residential tariff plan to DEP using confirmatory factor analysis and structural equation modelling approach. Next, we run an ordinal logit model to test the role and extent of association between stated preferences to switch from existing tariff plan to DEP and a range of explanatory factors, while controlling for the physical and socio-demographic profiles. Our findings suggest that switching preference for (DEP) options in Irish residential electricity consumers remains low and is more associated with intrinsic behavioural and situational factors moderated by annual income and age profiles of households than the existing tariff structure of households or the type of heating fuel used. These results provide a first estimation of the potential of DEP to change electricity use behaviour in a country where increasing electrification is a crucial part of the overall decarbonisation strategy and should provide insights to policymakers.