Econometric evaluation of a real-time electricity tariff.

Summary Tempo is EDF's new real-time pricing option for domestic customers. With six very different energy prices, households have strong incentives to reduce or postpone their consumption when prices are high. The purpose of this paper is to analyze the substitution capabilities of consumers in the face of this new tariff configuration as well as their gain in terms of welfare or expenditure compared to other tariff options. After formalizing the consumer's behavior with flexible indirect utility functions, we present expenditure elasticities and price elasticities in the Allen-Uzawa and Morishima sense. The econometric evaluation of Tempo in terms of welfare allows us to sketch a natural segmentation of the customers according to their electrical equipment and their consumption habits.