Distribution charges for consumers and microgeneration considering load elasticity sensitivity

Paulo E. Steele Santos, Jose W. Marangon Lima, Rafael C. Leme and Tiago G. Leite Ferreira

Energy Economics, 2012, vol. 34, issue 2, 468-475

Abstract: This paper presents an approach for calculating a tariff for electrical energy distribution systems. The methodology is similar to the standard tariff-calculation method used in Brazil. The approach combines the concepts of time-of-use tariffs and Ramsey prices. The process, initially designed for energy consumers, can be used to establish tariffs for micro-generation units. The resulting regulated distribution tariffs, for both consumer and generation units, has an hourly signal associated with long-run marginal costs. Moreover, while minimizing any loss of social benefits, the tariffs comply with the revenue reconciliation constraint. The proposed approach is applied to a real Brazilian distribution system and compared to the current procedure used by the Brazilian Electricity Regulatory Agency.

Keywords: Distribution pricing; Economic regulation; Microgeneration princig; Ramsey prices; Time-of-use tariff (search for similar items in EconPapers)
JEL-codes: C61 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:34:y:2012:i:2:p:468-475

DOI: 10.1016/j.eneco.2011.12.003

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