The paper examines the optimal two-part tariff problem in the residential electricity sector. It is shown that, even with distributional concerns, the optimal tariff for a public monopoly is not uniform across regions if marginal costs are differentiated. This sub-optimality result does extend to the case of a regulated private monopoly. It is also shown that the imposition of a uniform tariff constraint gives raise to trade-off between equity and efficiency. Finally, a simple tariff reform is examined, proving able to provide (both for a public and a private monopoly) a strong Pareto improvement.

Tariffa uniforme e regolamentazione dei ricavi nel settore elettrico dei consumi domestici

BERTOLETTI, PAOLO;
1997-01-01

Abstract

The paper examines the optimal two-part tariff problem in the residential electricity sector. It is shown that, even with distributional concerns, the optimal tariff for a public monopoly is not uniform across regions if marginal costs are differentiated. This sub-optimality result does extend to the case of a regulated private monopoly. It is also shown that the imposition of a uniform tariff constraint gives raise to trade-off between equity and efficiency. Finally, a simple tariff reform is examined, proving able to provide (both for a public and a private monopoly) a strong Pareto improvement.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11571/103184
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