The impact of electricity market reform on consumers |
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| Authors: | Catherine Waddams Price Khac Pham |
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| Affiliation: | 1. Department of Dermatology, University of Pennsylvania, Philadelphia, Pennsylvania;2. University of Vermont College of Medicine, Burlington, Vermont;3. Department of Dermatology, New York University School of Medicine, New York, New York;4. Department of Dermatology, Pennsylvania Hospital, Pennsylvania Center for Dermatology, Philadelphia, Pennsylvania;5. Department of Radiation Oncology, Temple University School of Medicine, Philadelphia, Pennsylvania;1. Departamento de Análisis Económico Aplicado, Universidad de Las Palmas de Gran Canaria (ULPGC), Spain;2. Departament d’Economia Aplicada, Research Group of Applied Economics (GEAP), and Institut de Recerca en Economia Aplicada (IREA), Universitat Autònoma de Barcelona (UAB), Spain |
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| Abstract: | We examine the effect of electricity market reform on residential consumers, using hypothetical scenarios likely to be prompted by reform. These include raising tariffs to cost reflective levels and introducing a standing charge to recover 10% of the revenue to mirror cost reflective structures. For Albania and Bulgaria, where household expenditure surveys and electricity tariffs are available, we analyse the effects by expenditure decile and region. The impact of reforms varies considerably, depending on how far current tariffs reflect the long run marginal costs of supply, but likely reform scenarios will adversely affect low income households more than others. |
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