Distribution charges considering load elasticity

This paper presents a tariff´s computation approach for electrical energy distribution systems. The described methodology was developed from the traditional tariff-calculation method used in Brazil. The approach combines the concepts of time-of-use tariffs and Ramsey prices. The resulting tariffs for both consumer and generation units, besides having an hourly signal associated with long-term marginal costs, also comply with the revenue reconciliation, incorporating the least-loss approach of social benefits in regulated revenues for the distribution companies (DISCOs). The proposed approach is being tested in Brazil.