Falling Short : A Global Survey of Electricity Tariff Design
This paper provides a comprehensive overview of electricity pricing practices and tariff structure design in more than 60 developed and developing countries worldwide as of 2015-16. It evaluates the performance of electricity tariff designs accordi...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/568181583337584393/Falling-Short-A-Global-Survey-of-Electricity-Tariff-Design http://hdl.handle.net/10986/33417 |
| Summary: | This paper provides a comprehensive
overview of electricity pricing practices and tariff
structure design in more than 60 developed and developing
countries worldwide as of 2015-16. It evaluates the
performance of electricity tariff designs according to a
variety of important dimensions, notably cost recovery,
vertical equity (affordability), and horizontal equity (or
price differentiation). It also reflects on the extent to
which current electricity tariff designs are well-suited to
incentivize efficient adoption of emerging technologies,
such as distributed generation and storage, electric
vehicles, and demand-side participation. The results of the
survey indicate that electricity tariffs stand at $0.13 per
kilowatt-hour (when fully averaged across countries and
customer groupings); but differ hugely across jurisdictions
by a factor of 40:1. Electricity tariffs are far from
recovering limited capital costs and have not kept up with
inflation over time. Substantial price differentiation is
the norm, and affordability remains a significant concern.
Most countries' tariff structures are ill-adapted to
emerging technological disruption in the sector, due to the
scant use of load-related charges to cover the fixed costs
of the network, the continued preponderance of increasing
block tariffs for residential customers, and the limited
application of time-of-use pricing. |
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