Power Quality Differential Pricing Method Based On Game Theory

With the electricity industry's deregulation, the electricity pricing problems considering quality factors have been gradually concerned. In this paper, the market environment and existing pricing model are discussed, then a Power Quality (PQ) differential pricing method based on game theory is proposed: regarding customers'PQ levels as their private information, customers hope that they can enjoy good PQ but pay few expenses, and the goal of power supply company is profit maximization, based on revelation principle of Bayesian game theory and incentive compatible mechanism to build mathematic model under the condition of incomplete information, and the IEEE RBTS-Bus 3 distribution system is used to verify the proposed method; the mechanism design and the principal-agent theory are applied to the PQ differential pricing model, validity and feasibility are verified through the example. Results show that only when customers declare their real PQ demands to power supply company, the gains of both sides can be maximal.