Electricity Tariff Design: A Survey

Afia Malik and Amena Urooj

No 2022:81, PIDE Knowledge Brief from Pakistan Institute of Development Economics

Abstract: In a perfectly competitive market, electricity is priced at the Marginal Cost (MC); MC pricing guarantees economic efficiency (Gunatilake, et al., 2008). In other words, efficient electricity tariffs consider all power supply costs. To a great degree, it also accounts for capital investments for future expansion and up-gradation (Kojima, et al., 2014). In a free market, market forces of demand and supply pushed for MC recovery.

Pages: 16 pages
Date: 2022
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