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The impact of electricity market reform on consumers

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  • Price, Catherine Waddams
  • Pham, Khac
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    Abstract

    We examine the effect of electricity market reform on residential consumers, using hypothetical scenarios likely to be prompted by reform. These include raising tariffs to cost reflective levels and introducing a standing charge to recover 10% of the revenue to mirror cost reflective structures. For Albania and Bulgaria, where household expenditure surveys and electricity tariffs are available, we analyse the effects by expenditure decile and region. The impact of reforms varies considerably, depending on how far current tariffs reflect the long run marginal costs of supply, but likely reform scenarios will adversely affect low income households more than others.

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    File URL: http://www.sciencedirect.com/science/article/B6VFT-4SSP73J-1/2/91e95c56d0d7b1fce44d19e91e3403d8
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    Bibliographic Info

    Article provided by Elsevier in its journal Utilities Policy.

    Volume (Year): 17 (2009)
    Issue (Month): 1 (March)
    Pages: 43-48

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    Handle: RePEc:eee:juipol:v:17:y:2009:i:1:p:43-48

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    Web page: http://www.elsevier.com/locate/inca/30478

    Related research

    Keywords: Electricity market reform Consumers Household expenditure;

    References

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    1. Baker, Paul & Blundell, Richard & Micklewright, John, 1989. "Modelling Household Energy Expenditures Using Micro-data," Economic Journal, Royal Economic Society, vol. 99(397), pages 720-38, September.
    2. Silva, Patricia & Klytchnikova, Irina & Radevic, Dragana, 2007. "Poverty and environmental impacts of electricity price reforms in Montenegro," Policy Research Working Paper Series 4127, The World Bank.
    3. Catherine Waddams & Ruth Hancock, 1998. "Distributional effects of liberalising UK residential utility markets," Fiscal Studies, Institute for Fiscal Studies, vol. 19(3), pages 295-319, August.
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    Cited by:
    1. Codruţa Mare & Simona Laura Dragoş & Dan Tudor Lazăr & Cristian Mihai Dragoş, 2013. "Consumer protection through prices: an analysis of the energetic sector in European Union countries," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(34), pages 327-341, June.
    2. Gassmann, Franziska & Tsukada, Raquel, 2013. "Switching off or switching source: energy consumption and household response to higher energy prices in the Kyrgyz Republic," MERIT Working Papers 047, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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