The Value of Lost Load (VoLL) for Electricity in Great Britain

Practice area: Competition & Antitrust | Consumer behaviour and protection | Energy economics | Public Policy | Regulatory economics
Client: N/A
Published: July, 2013
Keywords: modelling quantitative analysis

As part of the documents for the Consultation on the draft Electricity Market Reform Delivery, the Department of Energy and Climate Change has published the report prepared by London Economics which estimates the value of lost load (VoLL) for domestic, small and medium sized businesses and industrial and commercial electricity consumers in Great Britain. VoLL represents the value that electricity users attribute to security of electricity supply and the estimates could be used to provide a price signal about the adequate level of security of supply in Great Britain. The research is based on a variety of methods, but the major work element involved estimation of VoLL using choice experiments (CE).