Variable Power Tariffs Exacerbate Social Inequalities?

This data-file tabulates the impacts of variable electricity tariffs, after switching 4.622 households over from fixed electricity tariffs, across a large-scale sample in the United States. This theme is increasingly important as intermittent renewables reach in developed world power grids (note here).


Residential electricity demand is inelastic, with a 20% price-increase yielding a mere 1% reduction in end-demand. Peakload demand fell by 4%.

However, socially “vulnerable” consumers suffered disproportionately, only achieving a 2% decrease in peakload demand. Hence, while monthly power prices rose by 18% for non-vulnerable consumers, they rose by 22% for vulnerable consumers. The results, data and study are in the data-file.

We do think that power grids will increasingly need to offer economic incentives for demand shifting, amidst increasing deployment of renewables. However based on past studies, they may need to tread carefully.

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