dc.contributor.author | MEEUS, Leonardo | |
dc.contributor.author | GOVAERTS, Niels | |
dc.contributor.author | SCHITTEKATTE, Tim | |
dc.date.accessioned | 2020-07-10T07:51:16Z | |
dc.date.available | 2020-07-10T07:51:16Z | |
dc.date.issued | 2020 | |
dc.identifier.issn | 1830-1541 | |
dc.identifier.uri | https://hdl.handle.net/1814/67674 | |
dc.description.abstract | To better reflect local grid conditions to consumers, many regulators are reforming their distribution network tariffs. In this literature review, we start by discussing the difference between short-run and long-run marginal pricing for distribution grids. Short-run marginal pricing is first-best but hard to implement in practice. Several authors therefore argue to that it makes sense to signal long-run marginal costs through a forward-looking charge based on a forward looking cost model. After, we compare four implementations of forward looking cost models that are currently being used in Great-Britain. Finally, we discuss the link between cost models and charge design. We formulate two conclusions. First, forward looking cost models are complex both for the regulator and the grid users. Designing cost-reflective distribution tariffs can help, but tariffs are regulatory tools with limitations. Second, we identify a gap in the literature. There is more academic work on charge design than on forward looking cost models. | en |
dc.format.mimetype | application/pdf | en |
dc.language.iso | en | en |
dc.publisher | European University Institute | en |
dc.relation.ispartofseries | EUI RSCAS PP | en |
dc.relation.ispartofseries | 2020/04 | en |
dc.relation.ispartofseries | Florence School of Regulation | en |
dc.relation.ispartofseries | [Electricity] | en |
dc.rights | info:eu-repo/semantics/openAccess | en |
dc.subject | Distribution network tariffs | en |
dc.subject | Distributed energy resources | en |
dc.subject | Network modelling | en |
dc.subject | Electrification | en |
dc.title | Cost-reflective network tariffs : experiences with forward looking cost models to design electricity distribution charges | en |
dc.type | Other | en |