Overview

peak-load pricing


Related Overviews

 

'peak-load pricing' can also refer to...

 

More Like This

Show all results sharing this subject:

  • Economics

GO

Show Summary Details

Quick Reference

A price structure in which more is charged for units supplied at peak-load periods than for units supplied at other times. The argument for peak-load pricing is that the total capacity needed for a power, transport, or telephone system is determined by the maximum output it has to provide. If demand fluctuates daily or seasonally, charging higher prices at times of peak-loading makes prices reflect the extra capacity costs imposed by peak-period users. It also gives an incentive for customers who can avoid the peak period at low cost to themselves to do so.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.