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Project information

Distribution network costs analysis and optimal access tariffs design

J. Rivier J. Peco I.J. Pérez-Arriaga M. Rodríguez

June 2004 - May 2005

Funding entity Iberdrola


The main aim is to develop an optimal access tariffs design methodology. The methodology has two steps: first identifying every cost concept that needs to be included in the access tariff (these are all the power system regulated costs, from all the distribution costs to several permanent system costs as the regulator, etc.). Second assigning such costs to every client or type of client.
This project will try to apply the cost-causality concept to the assignment of all the cost concepts. Such assignment should lead to tariffs that send optimal economic signals to the clients. This could mean differentiation by localization, voltage level, quality requirements, demand profile, etc.
From all the cost concepts included in the access tariffs, the most difficult to assign is the distribution network costs. The use of the cost-causality concept implies a deep knowledge of the distribution network cost function, which depends on variables that describe the market served. As a starting point, such variables could be clients geographical localization and their individual demand profile.


    Research topics:

IBD Tarifas

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