Abstract: The current electric power operation environment is increasingly becoming complex and the reform of the electric power system is on the way. For the situation that the power industry is gradually depending on information, energy efficiency is low and the current interactivity between the user and the electric power company is not frequent. A real-time pricing model basing on classification of electrical appliances is developed, in which the electrical appliances can be divided into categories according to their use for different kinds of users, and then be real-timely made into different electric prices of using the appliances by the electric power company in order that the users can decide to use these electrical appliances according to the prices. By using smart meters, the subscribers can get the information of the electric prices at any time and adjust the time of using the electric equipment in time. Meanwhile, the electric power company can also know the whole power consumption to adjust the price and supply, by which the electric power can be kept to run smoothly. Thus the peak load is reduced and the electricity in the volley can also be fully utilized.This model is both time-effective and can make the utility of the supply and demand of electricity maximization. Finally, by comparison and analysis of numerical results,the residents can use the same or less electric power to get high degree of satisfaction. The effectiveness of the constructed model and the corresponding method are verified. The proposed model has important theoretical and practical significance to optimize the real time electric pricing system.

Key words: smart grid, real time pricing, load shifting, classification of electrical appliances