Optional real-time pricing of electricity for industrial firms

Chi Keung WOO, Peter CHOW, Ira HOROWITZ

Research output: Contribution to journalArticlespeer-review

15 Citations (Scopus)


This paper proposes a pricing mechanism, optional real-time pricing (RTF), with dayahead hourly prices, that exploits the potential offered by a competitive wholesale power market. When an electric utility offers the option to its industrial customers, the retail prices are based on an existing Hopkinson tariff and expectations as to the wholesale market's next-day hourly spot prices. The proposed RTF mechanism is Pareto-superior to the tariff in that it assures both the utility and the customer of profits that will be at least as great as under the tariff. Copyright © 1996 John Wiley & Sons Australia, Ltd.
Original languageEnglish
Pages (from-to)79-92
JournalPacific Economic Review
Issue number1
Publication statusPublished - Jun 1996


Woo, C.-K., Chow, P., & Horowitz, I. (1996). Optional real-time pricing of electricity for industrial firms. Pacific Economic Review, 1(1), 79-92. doi: 10.1111/j.1468-0106.1996.tb00175.x


Dive into the research topics of 'Optional real-time pricing of electricity for industrial firms'. Together they form a unique fingerprint.