@article{publications16479,
          volume = {35},
          number = {4},
           month = {October},
          author = {Thomas-Olivier L{\'e}autier},
           title = {Is mandating smart meters smart?},
       publisher = {Oelgeschlager, Gunn \& Hain},
            year = {2014},
         journal = {Energy Journal},
           pages = {135--158},
        keywords = {electric power markets, demand response, smart grid},
             url = {https://publications.ut-capitole.fr/id/eprint/16479/},
        abstract = {The advent of "smart meters" will make possible Real Time Pricing of electricity: customers
will face and react to wholesale spot prices, thus consumption of electric power will be aligned
with its opportunity cost. This article determines the marginal value of a fraction of demand (or
a consumer) switching to Real Time Pricing. First, it derives this marginal value for a simple yet
realistic specification of demand. Second, using data from the French power market, it estimates
that, for the vast majority of residential customers whose peak demand is lower than 6 kV A, the
net surplus from switching to Real Time Pricing is lower than 1 euro/year for low demand elasticity,
4 euros/year for high demand elasticity. This finding casts a doubt on the economic value of rolling
out smart meters to all residential customers, for both policy makers and power suppliers.}
}