As one of the economical means of demand side management

the implementation effect of peak and valley time price is influenced by various factors. This paper analyzes the consequence among the influenced factors from the system and dynamic viewpoint

and builds a peak and valley time price system consisting of six subsystems

which are peak and valley time structure subsystem

user response subsystem

electricity consumption characteristic subsystem

user satisfaction subsystem

power supply profit subsystem and generation profit subsystem. On this basis

a system dynamic model of peak and valley time price is established. At last

computer simulations preliminarily prove the correctness of the established model. The establishment of the proposed model can provide the useful technique support for further establishment and implementation of peak and valley time price policies.