IDEAS home Printed from https://ideas.repec.org/a/pid/journl/v61y2022i4p663-680.html
   My bibliography  Save this article

Electricity Tariff Design: A Survey (Policy)

Author

Listed:
  • Afia Malik

    (Pakistan Institute of Development Economics, Islamabad.)

  • Amena Urooj

    (Pakistan Institute of Development Economics, Islamabad.)

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. In contrast, for a regulated market, the regulator sets the tariff according to the costs and reasonable return determined through the regulatory process. The regulator followed pre-determined guidelines, parameters, and standards set by the government; it may or may not be MC pricing.

Suggested Citation

  • Afia Malik & Amena Urooj, 2022. "Electricity Tariff Design: A Survey (Policy)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 61(4), pages 663-680.
    • Handle: RePEc:pid:journl:v:61:y:2022:i:4:p:663-680
    as

    Download full text from publisher

    File URL: https://pide.org.pk/pdfpdr/2022/663%E2%80%93680.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:61:y:2022:i:4:p:663-680. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.