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Designing natural gas network charges: A proposed methodology and critical review of the Spanish case

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  • Mosácula, Celia
  • Chaves-Ávila, José Pablo
  • Reneses, Javier

Abstract

One of the key objectives of regulated charges is to provide efficient price signals to elicit an efficient response by users and maximize social welfare. Nevertheless, current approaches in Europe and elsewhere mainly pursue cost recovery with less attention to economic efficiency. This paper addresses the development of sound and suitable natural gas network charges which should fulfil these and other regulatory principles that have economic and social implications.

Suggested Citation

  • Mosácula, Celia & Chaves-Ávila, José Pablo & Reneses, Javier, 2018. "Designing natural gas network charges: A proposed methodology and critical review of the Spanish case," Utilities Policy, Elsevier, vol. 54(C), pages 22-36.
    • Handle: RePEc:eee:juipol:v:54:y:2018:i:c:p:22-36
    DOI: 10.1016/j.jup.2018.07.001
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    References listed on IDEAS

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    1. Severin Borenstein & James Bushnell, 2015. "The US Electricity Industry After 20 Years of Restructuring," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 437-463, August.
    2. Severin Borenstein & Lucas W. Davis, 2012. "The Equity and Efficiency of Two-Part Tariffs in U.S. Natural Gas Markets," Journal of Law and Economics, University of Chicago Press, vol. 55(1), pages 75-128.
    3. Severin Borenstein, 2012. "The Redistributional Impact of Nonlinear Electricity Pricing," American Economic Journal: Economic Policy, American Economic Association, vol. 4(3), pages 56-90, August.
    4. Alonso, Alejandro & Olmos, Luis & Serrano, Miguel, 2010. "Application of an entry-exit tariff model to the gas transport system in Spain," Energy Policy, Elsevier, vol. 38(9), pages 5133-5140, September.
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    1. Mosácula, Celia & Chaves-Ávila, José Pablo & Reneses, Javier, 2019. "Reviewing the design of natural gas network charges considering regulatory principles as guiding criteria in the context of the increasing interrelation of energy carriers," Energy Policy, Elsevier, vol. 126(C), pages 545-557.

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