A look at the response of households to time-of-use electricity pricing in Saudi Arabia and its impact on the wider economy

We quantify how households may react to a price change by focusing on two of the biggest electricity-consuming household items: appliances and air-conditioners. Price response features that deal with the usage of these items are incorporated in a modeling framework that we have developed. Based on an assumed TOU price that the power utility may charge during peak summer hours, the main findings of our analysis for the year 2011 are: