Arcturus: International Evidence on Dynamic Pricing

The wide range of results of demand response initiatives has led some observers to conclude that we still don’t know whether customers respond to DR. However, an analysis of the Arcturus database of dynamic pricing and time-of-use pricing studies finds that much of the discrepancy in results goes away when DR is expressed as a function of the peak to off-peak price ratio, and that customers do indeed respond to rising prices by lowering their peak demand in a consistent fashion. This supports the case for rollout of dynamic pricing wherever advanced metering infrastructure is in place.