Growing self-generation and storage are expected to cause significant changes in residential electricity utilization patterns. Commonly applied volumetric network tariffs may induce imbalance between different groups of households and their respective contribution to recovering the operating costs of the grid. Understanding consumer behaviour and appliance usage together with socio-economic factors can help regulatory authorities to adapt network tariffs to new circumstances in a fair way. Here, we assess the effects of 11 network tariff scenarios on household budgets using real load profiles from 765 households. Thus we explore the possibly disruptive impact of applying peak-load-based tariffs on the budgets of households when they have been mainly charged for consumed volumes before. Our analysis estimates the change in household network expenditure for different combinations of energy, peak and fixed charges, and can help to design tariffs that recover the costs needed for the sustainable operation of the grid.

There is a widespread consensus among the most important players in developed countries (voters, politicians, producers, traditional and green interest groups and bureaucracies) that a shift towards an eco-social market economy is essential for sustainable growth. Nevertheless, market-based instruments have not as yet been implemented satisfactorily in environmental policy. To identify the reasons for this insufficient implementation over the past decade, the Public Choice theory is used. The players’ behavior is analyzed in order to show that their incentives for implementing market-based instruments in environmental policy, instead of command-and-control measures, are surprisingly weak. Knowing the obstacles to implementing market-based instruments provides valuable insight into how to overcome them.