Revenue Management and Dynamic Pricing in Electricity Market

One of the research areas of optimization which, in recent decades, has been of particular interest to large-scale industries, is revenue management. The goal of revenue management is maximizing dealer or manufacturer‘s profit along with customer satisfaction in a win-win game. Revenue management is closely interconnected with pricing, understanding customer reactions and also forecasting their demand in future. Energy sector is one of the most recent industries that use revenue management towards various purposes.Due to restrictions in the supply of energy resources, a revolution happened in power markets from structure that supply follows demand to one where demand follows supply. Researchers and professionals in the energy production propose various programs such as demand response plans, dynamic pricing strategies and predicting customer behavior in order to achieve this goal. Given the critical situation of electricity consumption, and limited electricity supply resources around the world, improvement of this type of energy consumption is one of the top priority research topics for officials and researchers. This paper presents a literature survey on some publications in this area.

Keywords:

: Revenue management , Dynamic Pricing , Electricity Market