Electricity Tariffs

Reneses, Javier; Rodríguez, María Pía; Pérez-Arriaga, Ignacio J.

doi:10.1007/978-1-4471-5034-3_8

Cited by 14 publications

(10 citation statements)

References 22 publications

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“…The regulation of natural monopolies is also historically related to the mission and ability of public services to serve the general interest and to comply with broader social and economic requirements (European Commission 2015; Reneses et al 2013;Honkapuro and Tuunanen 2012;Eurelectric 2013;Rodríguez Ortega et al 2008;Berg and Tschirhart 1988;Reneses et al 2013). For example, electricity tariffs should guarantee fairness across consumers through non-discriminatory pricing.…”

Section: Relationship Between Expenses Categories and Cost Componentsmentioning

confidence: 99%

“…Fixed costs represent on average 91% of total infrastructure costs in European distribution grids against 9% for variable costs (Reneses et al 2013). However, the benchmark on DSOs' tariff designs realized on behalf of the European Commission shows that tariffs recover most fixed costs through a volumetric charge, regardless of the voltage level (European Commission 2015).…”

Section: Limitation Of Volumetric Tariffs To Send Flexibility Signalsmentioning

confidence: 99%

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Electricity grid tariffs as a tool for flexible energy systems: A Danish case study

et al. 2019

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Section: Relationship Between Expenses Categories and Cost Componentsmentioning

confidence: 99%

Section: Limitation Of Volumetric Tariffs To Send Flexibility Signalsmentioning

confidence: 99%

Electricity grid tariffs as a tool for flexible energy systems: A Danish case study

et al. 2019

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“…There are four proposed attributes to be assessed as illustrated in Figure 3, which we consider as the most relevant for comparing tariff designs for active consumers, in addition to the main regulatory tariff principles such as simplicity, stability, equity, consistency, efficiency, transparency, etc. [34]. Distribution tariffs should be designed to fulfill three main objectives: firstly, to fully recover the distribution network costs, secondly to defer or mitigate, if possible, network reinforcements, and thirdly to allocate the network costs to consumers following economic efficiency principles.…”

Section: Evaluation Of Tariff Designsmentioning

confidence: 99%

Section: Evaluation Of Tariff Designsmentioning

confidence: 99%

Evaluation Methodology for Tariff Design under Escalating Penetrations of Distributed Energy Resources

2017

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Abstract:As the penetration of distributed energy resources (DERs) escalates in distribution networks, new network tariffs are needed to cope with this new situation. These tariffs should allocate network costs to users, promoting an efficient use of the distribution network. This paper proposes a methodology to evaluate and compare network tariff designs. Four design attributes are proposed for this aim: (i) network cost recovery; (ii) deferral of network reinforcements; (iii) efficient consumer response; (iv) recognition of side-effects on consumers. Through an analytical hierarchy process (AHP), the evaluation methodology is applied to compare traditional cost allocation methods, on the basis of 100% energy, 100% demand, and 50% energy-50% demand, with more advanced pricing methods based on distribution locational marginal prices in combination with cost-reflective network charges. Numerical results are obtained through a case study based on the IEEE 34-node test feeder with DER integration. The results illustrate the advantage of advanced pricing methods to promote an efficient integration of DER and demand price-response from consumers.

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“…Traditionally, electricity tariffs have evolved in parallel with the organization and regulation of electricity systems. From integral tariffs based on bundled services and costs under vertically integrated utilities, regulated as monopolies, to unbundled energy prices freely negotiated in electricity markets and regulated network and other policy charges (Pérez-Arriaga, 2013).…”

Section: Introductionmentioning

confidence: 99%

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2021

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The Danish Utility Regulator (DUR) has with this publication launched the first volume in DUR's Anthology Project Series on Better Regulation in the Energy Sector. The anthology project is conceived as a series of volumes to be published every two years on one or more relevant themes. This year's theme is Energy Regulation in the Green Transition and how best to address the challenges that an ambitious transition poses to our societies. The contributions in the anthology offer different and important perspectives on the urgent matter of Energy Regulation in the Green Transition. I believe it is important that we reflect on how regulation can be improved, and on the implications of the Green Transition for regulation. Obstacles and challenges in existing regulation must be identified and addressed in light of the political goal of ensuring a Green Transition. This means that we need to relentlessly consider whether the regulation is fit for purpose. Otherwise there is a risk that the Green Transition becomes unnecessarily expensive for end-users and society in general.In a broader sense, the aim of this project is also to foster inter-disciplinary discussions and encourage reflection on regulatory approaches among practitioners, businesses, academics, government officials and regulators alike. In this way, we hope that the anthology project will contribute to the on-going development of ideas to further improve the efficiency of the energy sector.The anthology is a collection of academic contributions chosen by DUR under guidance from the editorial team. The anthology is therefore not a DUR publication as such. It is important to stress that DUR -and the editorial team, for that matter -do not necessarily share all of the opinions or agree with all of the arguments expressed in the various contributions to the anthology. The authors of the articles bear sole responsibility for their contributions.The editorial team also had exciting, fruitful and at times animated discussions on more than one regulatory topic. This was particularly true in relation to the importance of ownership for efficiency and the long-term sustainability of the income-cap regulatory framework. This is also a subject that DUR has devoted some attention to in our analysis of the Green Transition and Economic Regulation from April 2020, where we argue that the income-cap regulatory framework adequately delivers on the regulatory challenges stemming from the Green Transition. Special thanks are due to Tooraj Jamasb, Henrik Lund, Peter Møllgaard and Birgitte Egelund Olsen, who accepted the invitation to participate in the editorial team despite busy schedules. I would also like to thank all of the authors who have contributed to this anthology.The Florence School of Regulation (FSR) and the Copenhagen School of Energy Infrastructure (CSEI) gracefully offered their cooperation in this project. Unfortunately, the planned physical seminars in Florence with FSR and in Copenhagen with CSEI had to be cancelled and replaced by a European book-launch webi...

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Electricity Tariffs

Cited by 14 publications

References 22 publications

Electricity grid tariffs as a tool for flexible energy systems: A Danish case study

Electricity grid tariffs as a tool for flexible energy systems: A Danish case study

Evaluation Methodology for Tariff Design under Escalating Penetrations of Distributed Energy Resources

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