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Electricity Tariff Design: A Survey

Author

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  • Afia Malik

    (Pakistan Institute of Development Economics)

  • Amena Urooj

    (Pakistan Institute of Development Economics)

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.

Suggested Citation

  • Afia Malik & Amena Urooj, 2022. "Electricity Tariff Design: A Survey," PIDE Knowledge Brief 2022:81, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:kbrief:2022:81
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    References listed on IDEAS

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    1. Afia Malik, 2020. "Circular Debt—an Unfortunate Misnomer," PIDE-Working Papers 2020:20, Pakistan Institute of Development Economics.
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