Appendix: The questionnaire about electricity rates

Currently, the introduction of the new electricity rate system called "Demand Response" is proposed. If the electricity usage of society increases, the electricity unit price will be high. On the contrary, the unit price of electricity rates will decrease if the electricity usage of society decreases. In short, demand response is a system to prompt the suppression of electricity usage by changing the electricity rate. It leads to securing the supplying systems of electric power. Electricity suppliers can set the electricity price based on the supply capacity. Details about each type of demand response are as follows:

1. Incentive scheme based on market price

(1) Time of use rate (TOU)

According to the peak or off-peak hours of the power usage of the society, the electricity company sets two or more time zones. Then, they set a high unit price in peak hours.

(2) Critical peak price (CPP)

The electricity supplier applies a significant premium price based on the degree of electricity system congestion or the wholesale price. It limits the number of days CPP is applied but does not decide when to implement CPP ahead of time.

(3) Real time price (RTP)

Electricity companies apply the wholesale retail price as the real-time electricity rate every hour.

2. Incentive scheme based on technological application

(1) Direct load control (DLC)

Sensors attached to each home appliance measure the power usage of each device in real time and send it to the electricity management system. Based on these data, the electricity management system automatically adjusts the electricity consumption (turning off and turning down electric devices) within the maximum usable amount of power determined in advance by each household.

* When your electricity usage exceeds the contract amount of electricity, please be aware that you may not use electricity. In other words, when the electricity usage exceeds the contract amount of electricity for each household, that household may not use electricity.

(2) Mix DLC and CPP

Usually, the electricity management system automatically adjusts the electricity consumption (turning off and turning down electric devices) within the maximum usable amount of power determined in advance by each household. However, the electricity supplier can apply a significant premium price when the electricity demand rapidly increases.

As above, the demand response is a scheme to decrease electricity usage in peak times by changing the electricity price. Furthermore, these schemes encourage electricity conservation.

3. When demand response introduces smart meter and tablet devices.

The smart meter is a measurement tool of electricity usage in each home. Each consumer can confirm his or her own electricity usage using a tablet device. Therefore, consumers need to pay the initial cost when they choose a demand response scheme. (If consumers choose the status quo, they do not need to pay the initial cost.) However, consumers pay the initial cost just one time. Then, they choose the most desirable scheme from six electricity pricing rules. When you choose each option, please assume “You have introduced the metered rate in the current option”. The metered rate is the electricity rate that is constant as long as electricity usage is below the threshold level. . However, if electricity usage exceeds the threshold level, the electricity rate increases in proportion to electricity usage. Please assume that payment for the initial cost and electricity decreases your discretionary money.

<Example of choice set>

Attributes / Option 1 / Option 2 / Option 3 / Option 4 / Option 5 / Status quo
Rule / TOU (Time of use rate)
/ CPP (Critical peak price)
/ RTP (Real time price)
/ DLC (Direct load control) / Mixed with DLC and CPP (DLPCPP) / Use based

Monthly fee / 6000 yen / 3000 yen / 10000 yen / 6000 yen / 10000 yen / 20000 yen
Initial cost / 5000 yen / 7000 yen / 3000 yen / 10000 yen / 15000 yen / 0 yen
Choose one option / ↓
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