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Методы Дифференциации Тарифов На Электроэнергию По Надежности
[Methods for Differentiating Electricity Tariffs by Reliability]

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  • Bespalova, Olga

Abstract

Growing electricity demand and the need to maintain excess energy capacity and meet peak demand in deregulated markets require attracting new investment and ensuring the reliability of electricity supply. These problems can be solved by differentiating electricity tariffs according to the reliability of its supply, which require taking into account the size of its costs for the creation of generating capacity and the costs of consumers associated with power outages (per 1 kWh). Paper discusses benefitts and drawbacks of these methods, and concludes that the consumer surveys should be used as the main method for assessing the costs of consumers for turning off their electricity, and as a controlling one, the cost of a backup generator (for industrial and commercial consumers) and the amount of hourly wages (for the population). Other factors: duration of the outage, warning time, type of housing and location, gender and age of consumers, the presence of children in the family, consumers' income should also be accounted for.

Suggested Citation

  • Bespalova, Olga, 2007. "Методы Дифференциации Тарифов На Электроэнергию По Надежности [Methods for Differentiating Electricity Tariffs by Reliability]," MPRA Paper 117334, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117334
    as

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    References listed on IDEAS

    as
    1. Caves, Douglas W & Herriges, Joseph A & Windle, Robert J, 1990. "Customer Demand for Service Reliability in the Electric Power Industry: A Synthesis of the Outage Cost Literature," Bulletin of Economic Research, Wiley Blackwell, vol. 42(2), pages 79-119, April.
    2. Douglas W. Caves & Joseph A. Herriges & Robert J. Windle, 1992. "The Cost of Electric Power Interruptions in the Industrial Sector: Estimates Derived from Interruptible Service Programs," Land Economics, University of Wisconsin Press, vol. 68(1), pages 49-61.
    3. Benjamin Bental & S. Abraham Ravid, 1982. "A Simple Method for Evaluating the Marginal Cost of Unsupplied Electricity," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 249-253, Spring.
    4. Munasinghe, Mohan, 1980. "Costs Incurred by Residential Electricity Consumers Due to Power Failures," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 6(4), pages 361-369, March.
    5. Arun P. Sanghvi, 1983. "Household Welfare Loss Due to Electricity Supply Disruptions," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    6. Michael L. Telson, 1975. "The Economies of Alternative Levels of Reliability for Electric Power Generation Systems," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 679-694, Autumn.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    electricity demand and supply; electricity producers and consumers; differentiating electricity tariffs; reliability demand modeling; power outage costs; use of market information; measurement of consumer surplus; proxy indicators; consumer surveys.;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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