Consideration on Allocation of Electricity Cost in Apartments using Single Contract: A Cooperative Game Theory Approach

We address electricity cost allocation in high-voltage apartments under the single contract. In the contract, an apartment electricity cost depends significantly on the tier of usage averaged across households in the tiered pricing system. Individual cost may impact each other. To address this feature within allocation problems, we employ cooperative game theory. Specifically the Shapley value is adopted. On employing Shapley value, there are two problems: 1) linear relationship between household electricity cost and household usage, and 2) computation complexity. To address these problems, we propose an adjustment method for household electricity cost allocated according to Shapley value, and an approximate computation approach. This method incentivizes reduced power consumption by compensating low-usage households while charging higher costs to high-usage ones. Moreover, it enables high-usage households to benefit from lower rates compared to residential low-voltage contracts. Copyright © The Korean Institute of Electrical Engineers.