Long-term Framework for Electricity Distribution Access Charges
Tooraj Jamasb (),
Karsten Neuhoff (),
David M Newbery () and
Michael Pollitt ()
Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge
In order to achieve overall economic efficiency, incentive regulation of electricity distribution utilities must address two important and inter-related issues. First, the utilities’ allowed revenues need to be set at correct levels. Second, the access charging mechanism by which the utilities recover the allowed revenues must give the correct economic signals to generation and load connected to the network. This paper is concerned with the latter aspect of regulation. The paper discusses the main economic principles that should form the basis on which a distribution access charging model is developed. The charging model should have a number of attributes: be calibrated to each existing network; contain an asset register; be able to determine assets needed to meet new demand; find least-cost system expansion; compute network losses and handle ancillary services; estimate incremental operating and maintenance costs; be available to users; and be simple enough for external users to understand.
Keywords: Electricity; network regulation; access charges; distributed generation (search for similar items in EconPapers)
JEL-codes: L43 L51 L94 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ene, nep-mic, nep-net and nep-reg
Note: EPRG, IO
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.electricitypolicy.org.uk:80
Working Paper: Long-term Framework for Electricity Distribution Access Charges (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:0551
Access Statistics for this paper
More papers in Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge
Bibliographic data for series maintained by Jake Dyer ().