Voltage Regulation in Private Environment: Opportunity or Threat

Historically, the general target of affecting demand via voltage regulation was conservation, that is, reducing peak demand and/or accumulated energy. In the private environment, however, profit maximization may take the place of conservation, regardless of the social welfare and consumers’ costs. This letter aims at highlighting the effectiveness of voltage regulation as a measure to maximize utilities’ profits. The new strategy can indeliberately cause more payments for customers. This letter simulates different cases which reveal the importance of the role that regulatory bodies have to play to prevent unethical actions in the private environment.