Русская версия English version

A technique of setting differentiated electricity tariffs depending on the level of consumer power supply reliability

V. Kolibaba, K. Mokrova

Vestnik IGEU, 2017 issue 1, pp. 69—76

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Abstract in English: 

Background: The existing system of electricity tariff setting for ultimate consumers does not account for the differences in reliability of power supply to different consumers. Consequently, part of the tariff that consumers in the low power supply reliability category pay covers the costs of maintaining higher reliability of power supply to consimers of categories 1 and 2, which creates the problem of cross-subsidization. And unlike the common cross-subsidization of utility companies by industrial consumers, subsidies in this case are given to large industrial companies that usually belong to higher reliability categories. This leads to price signal distortion, which makes it impossible to develop appropriate market mechanisms that would regulate the economic relations in the power industry.

Materials and methods: The study employed methods of comparative, content, economic and dimensional analysis. Intercompany economic performance data of OAO «Interconnected Power Networks» was used as the initial data.

Results: The authors have developed a technique of setting electricity tariffs differentiated by reliability of power supply to ultimate consumers. The technique has been confirmed by testing it in problems of more efficient reliability cost allocation of certain power network sections.

Conclusions: The developed technique allows setting differentiated electricity tariffs for different consumer categories according to the power supply reliability that they claim. The technique will solve the problem of cross-subsidizing consumers of higher reliability categories at the expense of consumers of the 3d reliability category, i.e. most of the electricity consumers. This will ensure equitable distribution of electricity costs for ultimate consumers and make the tariff structure more transparent to all electricity market entities.

Key words: electricity tariffs, differentiated tariffs,  reliability of electrical power supply, reliability level, reliability markup factor, consumer power supply, consumer categories.

References in English: 
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Ключевые слова на русском языке: 
тарифы на электроэнергию, дифференцированные тарифы, надежность электроснабжения, уровень надежности, затраты на надежность, надбавка за надежность, энергоснабжение потребителей, категории потребителей
Ключевые слова на английском языке: 
electricity tariffs, differentiated tariffs, reliability of electrical power supply, reliability level, reliability markup factor, consumer power supply, consumer categories
The DOI index: 
10.17588/2072-2672.2017.1.069-076
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