In the year 2012, The promotion of dynamics was done for the services like electricity. It was stated that the evolution of competitive wholesale markets and the development of cheaper communication technologies and various other things have increased the opportunities for implementing this method. This method is being accepted by the various groups in question and the only impeding factor is the fear of larger distribution of expenditure. Is being discussed that electricity pricing policy can be both static and dynamic. The static or text or flat prices do not change when the demand increases or decreases but the dynamic prices change according to the demand. Various researchers have discussed various pricing policies. They are discussed below.
Flat tariffs: In this policy, the Electricity Plans do not change even though the power demand changes. Even though the demand may peak unreasonably, the consumers do not have to pay any additional cost for the power being supplied to them in this situation. Now if the consumers are not being affected by the fluctuations in the energy demand at all they will not have any inclination whatsoever 2 reschedule their use of electricity. It is so because they have no financial risk for any unplanned or totally unavoidable electricity expenditure. Due to this, this technique is also called the welfare pricing scheme.
Block Rate tariffs: Watch the customers differently based on the quantity of the electricity that they consume. There are multiple tires in this scheme characterized by the amount of energy being consumed. If it is an inclining rate scheme then the per-unit cost of electricity will continue to increase with an increase in consumption and if it is a declining scheme then the exact opposite will happen
Seasonal tariffs: As the name suggests, different rates are implemented in different seasons to keep up with the variation in the demands as the seasons change for stop energy which is costlier during high demand seasons and vice versa.
Time-of-use (YOU) tariff: they are also called time-of-day tariffs and they are pre-decided costs that vary throughout the day based on high and low demand hours. They can stay effective both for short are long durations.
Super Peak YOU: it is much similar to the one discussed above but the peak duration is very short, say about 4 hours and this gives a stronger price signal to the customers.
Critical peak pricing (CPP): In the scheme, the prices are hi play only during a few peak hours during the rest of the day the prices are discounted. This gives the customer an even stronger financial incentive to avoid using electricity during high-demand hours.
Variable peak pricing (VPP): The only difference in this scheme from the one discussed above is that the price varies from day to day and the customers are pre-informed about the spikes in cost
Real-time pricing (RTP): This is the oldest scheme of dynamic pricing but it is also a term associated with maximum risk and uncertainty for the customers.
Peak time rebates (PTR): The customers get rebates for consuming a lower amount of electricity than what is predetermined during peak hour.