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dc.contributor.authorRichter, L.-L.
dc.contributor.authorPollitt, M. G.
dc.date.accessioned2016-08-11T15:25:16Z
dc.date.available2016-08-11T15:25:16Z
dc.date.issued2016-05-16
dc.identifier.otherCWPE1632
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/257154
dc.description.abstractThis paper considers the heterogeneity of household consumer preferences for electricity service contracts in a smart grid context. The analysis is based on original data from a discrete choice experiment on smart electricity service contracts that was designed and conducted in collaboration with Accent and 1,892 UK electricity consumers in 2015. The results suggest that while customers are willing to pay for technical support services, they are likely to demand significant compensation to share their usage and personally identifying data and to participate in automated demand response programs. Based on these findings potential platform pricing strategies that could incentivise consumers to participate in a smart electricity platform market are discussed. By combining appropriate participation payments with sharing of bill savings, service providers could attract the number of customers required to provide the optimal level of demand response. We also examine the significant heterogeneity among customers to suggest how, by targeting customers with specific characteristics, smart electricity service providers could significantly reduce their customer acquisition costs.en
dc.publisherFaculty of Economics
dc.relation.ispartofseriesCambridge Working Papers in Economics
dc.rightsAll Rights Reserveden
dc.rights.urihttps://www.rioxx.net/licenses/all-rights-reserved/en
dc.subjectDiscrete Choice Experiment
dc.subjectsmart energy
dc.subjectWillingness-to-Accept
dc.subjectplatform markets
dc.titleWhich Smart Electricity Service Contracts Will Consumers Accept? The demand for compensation in a platform market
dc.typeWorking Paper
dc.identifier.doi10.17863/CAM.1082


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