Distribution network tariffs: A closed question?

Electricity regulators are facing new challenges to keep the pace of the liberalization process and the revision of regulatory schemes that is taking place all over the world. The pressure is also felt by regulated activities such as distribution. One of the main objectives of this process is to imp...

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Veröffentlicht in:Energy policy 2008-05, Vol.36 (5), p.1712-1725
Hauptverfasser: Rodríguez Ortega, María Pía, Pérez-Arriaga, J. Ignacio, Abbad, Juan Rivier, González, Jesús Peco
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container_end_page 1725
container_issue 5
container_start_page 1712
container_title Energy policy
container_volume 36
creator Rodríguez Ortega, María Pía
Pérez-Arriaga, J. Ignacio
Abbad, Juan Rivier
González, Jesús Peco
description Electricity regulators are facing new challenges to keep the pace of the liberalization process and the revision of regulatory schemes that is taking place all over the world. The pressure is also felt by regulated activities such as distribution. One of the main objectives of this process is to improve efficiency. Electricity rates and more specifically distribution network tariffs should also be adapted to these new requirements. This paper describes the main rate design approaches that are used to recover distribution costs. Drawbacks of the current methods are highlighted, and a new tariff design methodology based on cost causality is presented. Efficiency achievement as well as compliance with legal and regulatory criteria, such as cost recovery and non-discrimination, is analyzed.
doi_str_mv 10.1016/j.enpol.2008.01.025
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source RePEc; PAIS Index; Elsevier ScienceDirect Journals
subjects Applied sciences
Cost recovery
Cost-causality function
Distribution costs
Distribution network tariffs
Economic data
Economic efficiency
Efficiency
Electric energy
Electric power
Electric rates
Electricity distribution
Energy
Energy economics
Energy efficiency
Energy industry
Exact sciences and technology
General, economic and professional studies
Methodology. Modelling
Network analysis
Regulatory policy
Studies
Tariffs
Trade liberalization
title Distribution network tariffs: A closed question?
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