Evaluation of electricity rates through characterization and forecasting of energy consumption

Purpose – Liberalisation of the European electricity sector has allowed the industrial consumers to freely choose their electricity suppliers. Proliferation of different contract proposals for such supply means that all proposals need to be carefully evaluated for correct supplier renewal choice. The purpose of this paper is to propose a methodology for the evaluation of heterogeneous proposals of electricity supply that would help industrial consumers to be ready to face supply contractors.Design/methodology/approach – The method relies on a three‐stage analysis: characterisation of electricity consumption in the industrial process; demand forecasts based on energy drivers and consumption characterisation; and finally a detailed tariff analysis. The method is illustrated through a case study of a renewal contract of an Italian industrial plant with a 20 percent incidence of electrical energy cost on the final product. The investigation also includes a sensitivity analysis on combustible basket price and ...