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...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/568181583337584393/Falling-Short-A-Global-Survey-of-Electricity-Tariff-Design http://hdl.handle.net/10986/33417 |
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okr-10986-334172022-09-20T00:11:38Z Falling Short : A Global Survey of Electricity Tariff Design Foster, Vivien Witte, Samantha ELECTRIC UTILITIES ELECTRICITY TARIFF POWER SECTOR REFORM AFFORDABILITY EQUITY 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. 2020-03-05T16:19:46Z 2020-03-05T16:19:46Z 2020-03 Working Paper http://documents.worldbank.org/curated/en/568181583337584393/Falling-Short-A-Global-Survey-of-Electricity-Tariff-Design http://hdl.handle.net/10986/33417 English Policy Research Working Paper;No. 9174 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ELECTRIC UTILITIES ELECTRICITY TARIFF POWER SECTOR REFORM AFFORDABILITY EQUITY |
| spellingShingle |
ELECTRIC UTILITIES ELECTRICITY TARIFF POWER SECTOR REFORM AFFORDABILITY EQUITY Foster, Vivien Witte, Samantha Falling Short : A Global Survey of Electricity Tariff Design |
| relation |
Policy Research Working Paper;No. 9174 |
| description |
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. |
| format |
Working Paper |
| author |
Foster, Vivien Witte, Samantha |
| author_facet |
Foster, Vivien Witte, Samantha |
| author_sort |
Foster, Vivien |
| title |
Falling Short : A Global Survey of Electricity Tariff Design |
| title_short |
Falling Short : A Global Survey of Electricity Tariff Design |
| title_full |
Falling Short : A Global Survey of Electricity Tariff Design |
| title_fullStr |
Falling Short : A Global Survey of Electricity Tariff Design |
| title_full_unstemmed |
Falling Short : A Global Survey of Electricity Tariff Design |
| title_sort |
falling short : a global survey of electricity tariff design |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/568181583337584393/Falling-Short-A-Global-Survey-of-Electricity-Tariff-Design http://hdl.handle.net/10986/33417 |
| _version_ |
1764478717070934016 |