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The Impact of Electricity Market Reform on Consumers

Author

Listed:
  • Catherine Waddams Price

    (Centre for Competition Policy, University of East Anglia)

  • Khac Pham

    (Centre for Competition Policy, University of East Anglia)

Abstract

We examine the effect of current electricity market reform on residential consumers, using a sequence of hypothetical scenarios which are 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 of each scenario according to expenditure decile and region. We compare these results to findings from a previous study of Turkey. 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.

Suggested Citation

  • Catherine Waddams Price & Khac Pham, 2008. "The Impact of Electricity Market Reform on Consumers," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2008-07, Centre for Competition Policy, University of East Anglia, Norwich, UK..
  • Handle: RePEc:uea:ueaccp:2008_07
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    More about this item

    Keywords

    electricity; market reform; consumers; household expenditure;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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