The Impact of Electricity Market Reform on Consumers

Catherine Waddams Price and Khac Pham
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Catherine Waddams Price: Centre for Competition Policy, University of East Anglia
Khac Pham: Centre for Competition Policy, University of East Anglia

No 2008-07, Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) from Centre for Competition Policy, University of East Anglia, Norwich, UK.

Abstract: We examine the effect of current electricity market reform on residential consumers, using a sequence of hypothetical scenarios which are likely to be prompted by reform. These include raising tariffs to cost-reflective levels and introducing a standing charge to recover 10% of the revenue to mirror cost-reflective structures. For Albania and Bulgaria, where household expenditure surveys and electricity tariffs are available, we analyse the effects of each scenario according to expenditure decile and region. We compare these results to findings from a previous study of Turkey. The impact of reforms varies considerably, depending on how far current tariffs reflect the long run marginal costs of supply, but likely reform scenarios will adversely affect low income households more than others.

Keywords: electricity; market reform; consumers; household expenditure (search for similar items in EconPapers)
JEL-codes: D10 L94 Q40 Q48 (search for similar items in EconPapers)
Date: 2008-08-01
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Persistent link: https://EconPapers.repec.org/RePEc:uea:ueaccp:2008_07

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