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The impact of electricity market reform on consumers

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  • Price, Catherine Waddams
  • Pham, Khac

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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  • Price, Catherine Waddams & Pham, Khac, 2009. "The impact of electricity market reform on consumers," Utilities Policy, Elsevier, vol. 17(1), pages 43-48, March.
    • Handle: RePEc:eee:juipol:v:17:y:2009:i:1:p:43-48
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    4. Çetinkaya, Murat & Başaran, Alparslan A. & Bağdadioğlu, Necmiddin, 2015. "Electricity reform, tariff and household elasticity in Turkey," Utilities Policy, Elsevier, vol. 37(C), pages 79-85.
    5. Moreno, Blanca & López, Ana J. & García-Álvarez, María Teresa, 2012. "The electricity prices in the European Union. The role of renewable energies and regulatory electric market reforms," Energy, Elsevier, vol. 48(1), pages 307-313.
    6. 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.
    7. Peter A. Groothuis & Tanga McDaniel Mohr, 2014. "Do Consumers Want Smart Meters? Incentives or Inertia: Evidence from North Carolina and Lessons for Policy," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    8. Gassmann F. & Tsukada R., 2013. "Switching off or switching source : energy consumption and household," MERIT Working Papers 2013-047, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Bagnoli, Lisa & Bertoméu-Sánchez, Salvador, 2022. "How effective has the electricity social rate been in reducing energy poverty in Spain?," Energy Economics, Elsevier, vol. 106(C).
    10. Mpholo, Moeketsi & Mothala, Matsoso & Mohasoa, Lebohang & Eager, Dan & Thamae, Retselisitsoe & Molapo, Tsita & Jardine, Tom, 2020. "Determination of the lifeline electricity tariff for Lesotho," Energy Policy, Elsevier, vol. 140(C).
    11. Srivastava, Govind & Kathuria, Vinish, 2014. "Utility reforms in developing countries: Learning from the experiences of Delhi," Utilities Policy, Elsevier, vol. 29(C), pages 1-16.
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    15. Pacudan, Romeo & Hamdan, Mahani, 2019. "Electricity tariff reforms, welfare impacts, and energy poverty implications," Energy Policy, Elsevier, vol. 132(C), pages 332-343.

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