ROADEF 2026>
A bilevel model for pricing: time-of-use tariffs and flexible clients
Abdellah Bulaich Mehamdi  1@  , Wim Van Ackooij  2@  , Luce Brotcorne  3@  , Stéphane Gaubert  4@  , Quentin Jacquet  2@  
1 : CMAP, EDF, and INRIA
CMAP, École Polytechnique, Electricité de France - EDF, INRIA
2 : EDF
Electricité de France - EDF
3 : INRIA
INRIA
4 : INRIA
INRIA

We present a pricing model that links demand elasticity, anticipation of customer needs, and tariff optimization. We simultaneously optimize prices and time windows to mitigate demand peaks, adjust tariffs to market price dynamics, and leverage solar production. We formulate the problem as a bi-level program: at the upper level, the supplier chooses prices and periods to maximize profit while anticipating consumer reactions; at the lower level, each customer decides whether to adopt the offer or remain with an outside option, and optimizes their consumption accordingly.

This hierarchical structure captures realistic interactions: the supplier balances attractiveness and profitability, while customers minimize their individual expenses. We propose a reformulation as a Mathematical Program with Equilibrium Constraints (MPEC) using the KKT conditions of the customers' subproblems. A Benders decomposition is applied: the master problem computes the schedule, while the subproblem selects prices, optimal consumption, and acceptance variables, returning feasibility/optimality cuts that approximate the aggregated profit.


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