Abstract
The paper is concerned with the coordination of interaction between various types of consumers and a power company to manage electricity consumption by using the adverse selection model based on contract theory. There are several power companies competing in the electricity market according to the Bertrand model. A method is proposed for load curve optimization by different types of consumers and a power company. Moreover, the types of consumers are identified and distinguished. The utility functions constructed for them describe the real situation rather well, and allow the implementation of a system of incentives for load curve optimization (load shifting from a peak time of the day by bounded rational consumer). The prices in rates providing a separating equilibrium are determined.
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