Effects Comparison of Peak-Load Price under Price Cap Regulation

Author

Ye, Ze ; Cai, Jiangang

Author_Institution

Sch. of Econ. & Manage., Changsha Univ. of Sci. & Technol., Changsha, China

fYear

2010

fDate

7-9 Nov. 2010

Firstpage

1

Lastpage

5

Abstract

The reform of electricity price is the core of electricity deregulation, and reasonable price should be an organic unity of price level and price structure. The examination of the effects of peak-load price under different price cap forms dawns on us that the price cap regulation has the effects of cost-recovery. Comparing with absolute price cap regulation, the relative price cap regulation is more advantageous, and the peak-load price in such regulation tends to be the Ramsey Price which can maximize social welfare as much as possible. At the same time, for relative price cap regulation, no matter what adopting Laspeyres price index and Paasche price index, the effects are identical.

Keywords

electricity; pricing; regulation; Laspeyres price index; Paasche price index; Ramsey Price; cost recovery effect; electricity deregulation; electricity price; organic unity; peak load price; price cap regulation; price level; price structure; reasonable price; social welfare; Biological system modeling; Economics; Electricity; Equations; Indexes; Mathematical model; Pricing;

fLanguage

English

Publisher

ieee

Conference_Titel

E-Product E-Service and E-Entertainment (ICEEE), 2010 International Conference on

Conference_Location

Henan

Print_ISBN

978-1-4244-7159-1

Type

conf

DOI

10.1109/ICEEE.2010.5661621

Filename

5661621