Power Quality Pricing Method Considering Quality Risk in Deregulated Retail Market

Under the background of power retail market deregulation, users have put forward diversified demands for power quality (PQ). For power selling company, to provide different power quality for users, it is important to reasonably price the customized power quality services with consideration of the risk that the actual power quality is lower than the agreed level. In this paper, a power quality pricing method considering quality risk is proposed. First, according to the power quality index, the power quality grade is divided with each grade corresponds to a price and a compensation price. The probability of decline of each power quality grade is analyzed. Second, the utility of power consumption of users with different PQ levels is introduced, and the users' risk income model is established. The expected profit model of electricity selling company is also established according to the choice of users' power quality grade. Finally, the power quality pricing model is formulated with the goal of maximizing the total expected cost of the power selling company with constraints of the users' total expected costs. The established model is solved using Particle Swarm optimization. The case study shows that the power quality pricing method considering the quality risk can reasonably determine the electricity sales price, improving the expected profits of the power sales company, as well as decreasing economic loss of users due to PQ issues.