Tariffs - Revision history

Johanna: /* Further Information */

2018-02-05T16:18:47Z

‎Further Information

Lisafeldmann at 11:37, 11 June 2015

2015-06-11T11:37:10Z

Wiki Gardener at 14:47, 6 November 2014

2014-11-06T14:47:37Z

Wiki Gardener: /* Tariff Experiences within GIZ */

2014-11-06T14:36:13Z

‎Tariff Experiences within GIZ

Wiki Gardener at 11:00, 17 October 2014

2014-10-17T11:00:29Z

Wiki Gardener: /* Overview */

2014-10-17T10:59:10Z

‎Overview

Wiki Gardener at 10:57, 17 October 2014

2014-10-17T10:57:40Z

Wiki Gardener at 11:38, 6 October 2014

2014-10-06T11:38:56Z

Ranisha at 13:45, 25 August 2014

2014-08-25T13:45:13Z

Ranisha: /* Flat Rate Tariffs */

2014-08-19T12:10:29Z

‎Flat Rate Tariffs

@@ Line 131: / Line 131: @@
 <br/>
 = Further Information<br/> =
@@ Line 138: / Line 139: @@
 *[[Feed-in Policies|Feed-in Policies]]
 *[[:File:Feed-in study ethiopia - 001-084.pdf|Feed in Tarif for small/mini hydro power projects]]<br/>
 <br/>
 = References<br/> =

@@ Line 2: / Line 2: @@
 = Overview<br/> =
-Tariffs in General and of course '''tariff setting''' is very site specific. <br/>
+Tariffs in General and of course '''tariff setting''' is very site specific.<br/>
 <u>Some rules may count generally:</u><br/>
 *Operation & maintenance cost must be covered. Ideally a schemes installations cost will be refinanced.
 *An e.g. mico-hydro powers management operates more stable if revenue also covers "exceptional" expenses.<br/>
@@ Line 19: / Line 20: @@
 <u>Advantages:</u>
 *very cheap (no metering or delimiting device)
 *simple and therefore easy to establish
@@ Line 27: / Line 29: @@
 <u>Disadvantages:</u>
 *provokes waste of electricity, no incentive for saving (small steps / tariff per item decrease waste potential)
 *requires load limiter if misuse is practiced - no cheap and solid load control available (see [[Metering and Billing Systems|Metering / Current limiter]])
@@ Line 36: / Line 39: @@
 <u>Best Practice and Tariff Setting</u><ref name="Best Practices for Sustainable Development of Micro Hydro Power, URL: http://www.microhydropower.net">Best Practices for Sustainable Development of Micro Hydro Power, URL: http://www.microhydropower.net</ref>:
 *The financial performance of all micro hydro plant could be improved if the average tariff was kept in line with local inflation.
 *Life line tariffs under which the richer consumers cross subsidies households that cannot pay will spread the poverty reducing benefits of micro hydro - as long as the total revenue is adequate.
@@ Line 65: / Line 69: @@
 <u>Some of the important measures it has undertaken in the past tariff orders are mentioned below:</u>
 *introduction of kWh and time of use tariffs for various categories of consumers
 *slab rationalisation across categories of consumers
@@ Line 71: / Line 76: @@
 *introduction of a night time concessional tariff for industrial consumers
-The Commission believes that there is further scope for tariff rationalisation across various consumer categories, which will make the industry more competitive, drive growth in the state and attract investments into the sector. The NEP states that consumers below poverty line, who consume below a specified level, say 30 units per month, may receive special support in terms of tariff, which is cross-subsidized. In Himachal Pradesh, such support is currently available to consumers below poverty line consuming 45 units per month. Commission may rationalise the existing slabs for domestic consumers further. The Commission may align the qualification criteria for support in terms of tariff in line with what has been suggested by the National Electricity Policy. The Policy also states that tariffs for such designated group of consumers will be at least 50 % of the average (overall) cost to serve. The Commission will also consider this guideline when determining the tariff for such consumers. It also believes that the future tariff determination exercise will be based on Cost to Serve and under a Multi Year Tariff framework.
+The Commission believes that there is further scope for tariff rationalisation across various consumer categories, which will make the industry more competitive, drive growth in the state and attract investments into the sector. The NEP states that consumers below poverty line, who consume below a specified level, say 30 units per month, may receive special support in terms of tariff, which is cross-subsidized. In Himachal Pradesh, such support is currently available to consumers below poverty line consuming 45 units per month. Commission may rationalise the existing slabs for domestic consumers further. The Commission may align the qualification criteria for support in terms of tariff in line with what has been suggested by the National Electricity Policy. The Policy also states that tariffs for such designated group of consumers will be at least 50&nbsp;% of the average (overall) cost to serve. The Commission will also consider this guideline when determining the tariff for such consumers. It also believes that the future tariff determination exercise will be based on Cost to Serve and under a Multi Year Tariff framework.
 <br/>
@@ Line 78: / Line 83: @@
 The Classical CoS approach is based on estimating the voltage-wise cost, losses and coincident demand factor, i.e. the extent to which each consumer category contributes to the peak demand. Broadly, there are two approaches to determining the cost of supply: The Embedded Cost Approach and the Marginal Cost Pricing Approach.
 *The Embedded Cost Approach seeks to identify and assign the historical, or accounting costs that make up a utility’s revenue requirement.
 *Marginal cost approach seeks to determine the incremental (marginal) change in total costs imposed on the system by a change in output (whether measured by kWh, customer, customer group or other relevant cost driver).
@@ Line 110: / Line 116: @@
 <u>The Commission understands that the introduction of Multi Year Tariff would be faced with the following issues:</u>
 #Information Sufficiency - The implementation of an MYT framework usually requires reliable data. In the absence of adequate and reliable data, targets for efficiency improvement would not be accurate and forecasting would be an issue.
 #Capacity Building - The institutional capability - skills, information and resources available with the utility to develop and monitor the application of an MYT regime - of the licensee is another important issue.
 <u>In view of the above considerations and necessary prerequisites, the Commission lays out a detailed road map for introduction of the MYT Principles in the state of Himachal Pradesh:</u>
 *Commission comes out with a Consultative Paper on Multi Year Principles
 *Conduct of stakeholder consultations
@@ Line 137: / Line 145: @@
 <references /><br/>
 [[Category:Hydro]]

@@ Line 2: / Line 2: @@
 = Overview<br/> =
-<u>Tariffs in General - Of course '''tariff setting''' is very site specific. Some rules may count generally:</u>
+Tariffs in General and of course '''tariff setting''' is very site specific. <br/>
 *Operation & maintenance cost must be covered. Ideally a schemes installations cost will be refinanced.
-*A mhp's management operates more stable if revenue also covers "exceptional" expenses.
+*An e.g. mico-hydro powers management operates more stable if revenue also covers "exceptional" expenses.<br/>
 *Full transparency in book keeping (income, expenses, salaries,extras) allows trust and reliability.
 *Clarify local legality and practicability of cooperative structures. If community based cooperatives often work stable.
@@ Line 12: / Line 14: @@
 <br/>
-== Flat Rate Tariffs<br/> ==
+= Flat Rate Tariffs<br/> =
 Flat rates usually have maximum levels. There is no incentive for the users to save energy within this levels. E.g. the lights are operated the whole night as it is paid for anyway.
@@ Line 26: / Line 28: @@
 <u>Disadvantages:</u>
 *provokes waste of electricity, no incentive for saving (small steps / tariff per item decrease waste potential)
-*requires load limiter if misuse is practiced - no cheap and solid load control available (see [[Metering_and_Billing_Systems|Metering / Current limiter]])
+*requires load limiter if misuse is practiced - no cheap and solid load control available (see [[Metering and Billing Systems|Metering / Current limiter]])
 *less fair (item based tariffs equalize fairness)
 <br/>
-== Best Practice and Tariff Setting<br/> ==
+= Best Practice and Tariff Setting<br/> =
 <u>Best Practice and Tariff Setting</u><ref name="Best Practices for Sustainable Development of Micro Hydro Power, URL: http://www.microhydropower.net">Best Practices for Sustainable Development of Micro Hydro Power, URL: http://www.microhydropower.net</ref>:
@@ Line 39: / Line 41: @@
 <br/>
 = Tariff Experiences within GIZ<br/> =
@@ Line 45: / Line 46: @@
 *[http://www.giz.de/en/ GIZ Homepage]
 *[[Tariffs and Billings Systems - Experience Matrix - MATA 2009|Experience Matrix of tariffs and billings systems - MATA 2009]]
-*[[Costs_and_Tariff_Setting_-_Examples|Costs and Tariff Setting (Examples: Senegal, Bolivia)]]
+*[[Costs and Tariff Setting - Examples|Costs and Tariff Setting (Examples: Senegal, Bolivia)]]
-−
-[[Tariffs#toc|►Go to Top]]
 <br/>
@@ Line 56: / Line 55: @@
 In Ghana multi level tariffs are applied in the national grid. A mixture of pre and post paid tariffs is applied. Consumers with a low electricity consumption get a lifeline tariff which allows them to consume 50kWh at low flat rate of .... If their consumption is higher than 50kWh they are charged a regular tariff.
 <br/>
@@ Line 75: / Line 72: @@
 The Commission believes that there is further scope for tariff rationalisation across various consumer categories, which will make the industry more competitive, drive growth in the state and attract investments into the sector. The NEP states that consumers below poverty line, who consume below a specified level, say 30 units per month, may receive special support in terms of tariff, which is cross-subsidized. In Himachal Pradesh, such support is currently available to consumers below poverty line consuming 45 units per month. Commission may rationalise the existing slabs for domestic consumers further. The Commission may align the qualification criteria for support in terms of tariff in line with what has been suggested by the National Electricity Policy. The Policy also states that tariffs for such designated group of consumers will be at least 50 % of the average (overall) cost to serve. The Commission will also consider this guideline when determining the tariff for such consumers. It also believes that the future tariff determination exercise will be based on Cost to Serve and under a Multi Year Tariff framework.
 <br/>
@@ Line 101: / Line 96: @@
 The Commission recognizes that the cost to serve for various consumer categories would require extensive, reliable and credible data and information which is a separate detailed exercise on its own. Therefore the Commission would like the utility to take adequate steps in this regard and make the tariff filing for FY 07-08 on the basis of Cost to Serve instead of Average cost to serve.
 <br/>
@@ Line 128: / Line 121: @@
 *Utility files for Draft Business Plan based on Approved principles
 *Commission comes out with a Tariff Order for transitive period
 <br/>
 = Further Information<br/> =
@@ Line 145: / Line 135: @@
 = References<br/> =
-<references />
+<references /><br/>
 [[Category:Ghana]]

@@ Line 39: / Line 39: @@
 <br/>
 = Tariff Experiences within GIZ<br/> =
@@ Line 44: / Line 45: @@
 *[http://www.giz.de/en/ GIZ Homepage]
 *[[Tariffs and Billings Systems - Experience Matrix - MATA 2009|Experience Matrix of tariffs and billings systems - MATA 2009]]
-*[[Costs and Tariff Setting|Costs and Tariff Setting (Senegal, Bolivia)]]
+*[[Costs_and_Tariff_Setting_-_Examples|Costs and Tariff Setting (Examples: Senegal, Bolivia)]]
 [[Tariffs#toc|►Go to Top]]
@@ Line 131: / Line 132: @@
 <br/>
 = Further Information<br/> =

@@ Line 1: / Line 1: @@
 = Overview<br/> =
@@ Line 12: / Line 9: @@
 *Tariffs have to be accepted by a communities majority. A strong fraction of supporters avoids later disagreements.
 *Avoid terms like "hydro power is free" especially during feasibility studies. You may raise wrong expectations.
 <br/>
@@ Line 21: / Line 16: @@
 Flat rates usually have maximum levels. There is no incentive for the users to save energy within this levels. E.g. the lights are operated the whole night as it is paid for anyway.
-<u>Advantages</u>
+<u>Advantages:</u>
 *very cheap (no metering or delimiting device)
 *simple and therefore easy to establish
@@ Line 29: / Line 24: @@
 <br/>
-<u>Disadvantages</u>
+<u>Disadvantages:</u>
 *provokes waste of electricity, no incentive for saving (small steps / tariff per item decrease waste potential)
-*requires load limiter if misuse is practiced - no cheap and solid load control available (see [[Metering and Billing Systems|Metering/Current limiter]])
+*requires load limiter if misuse is practiced - no cheap and solid load control available (see [[Metering_and_Billing_Systems|Metering / Current limiter]])
 *less fair (item based tariffs equalize fairness)
 <br/>
@@ Line 44: / Line 37: @@
 *Life line tariffs under which the richer consumers cross subsidies households that cannot pay will spread the poverty reducing benefits of micro hydro - as long as the total revenue is adequate.
 *While there is clear evidence that demand is sensitive to the tariff charged (many potential users would be excluded by full cost covering tariffs in many locations), there is also evidence that the ability of some people to pay is higher than originally thought.
 <br/>
 = Tariff Experiences within GIZ<br/> =
@@ Line 54: / Line 44: @@
 *[http://www.giz.de/en/ GIZ Homepage]
 *[[Tariffs and Billings Systems - Experience Matrix - MATA 2009|Experience Matrix of tariffs and billings systems - MATA 2009]]
-*[[Costs_and_Tariff_Setting|Costs and Tariff Setting (Senegal, Bolivia)]]
+*[[Costs and Tariff Setting|Costs and Tariff Setting (Senegal, Bolivia)]]
 [[Tariffs#toc|►Go to Top]]
@@ Line 155: / Line 145: @@
 <references />
 [[Category:Hydro]]

@@ Line 1: / Line 1: @@
 [[Portal:Hydro|►Back to Hydro Portal]]
@@ Line 13: / Line 14: @@
 <br/>
 == Flat Rate Tariffs<br/> ==
@@ Line 28: / Line 30: @@
 <u>Disadvantages</u>
 *provokes waste of electricity, no incentive for saving (small steps / tariff per item decrease waste potential)
-*requires load limiter if misuse is practiced - no cheap and solid load control available (see [[Metering_and_Billing_Systems|Metering/Current limiter]])
+*requires load limiter if misuse is practiced - no cheap and solid load control available (see [[Metering and Billing Systems|Metering/Current limiter]])
 *less fair (item based tariffs equalize fairness)
 [[Tariffs#toc|►Go to Top]]<br/>
 == Best Practice and Tariff Setting<ref name="Best Practices for Sustainable Development of Micro Hydro Power, URL: http://www.microhydropower.net">Best Practices for Sustainable Development of Micro Hydro Power, URL: http://www.microhydropower.net</ref><br/> ==
@@ Line 40: / Line 43: @@
 *While there is clear evidence that demand is sensitive to the tariff charged (many potential users would be excluded by full cost covering tariffs in many locations), there is also evidence that the ability of some people to pay is higher than originally thought.
-[[tariffs#toc|►Go to Top]]
+[[Tariffs#toc|►Go to Top]]
 = Tariff experiences within GIZ<br/> =
 *[[Tariffs and Billings Systems - Experience Matrix - MATA 2009|Experience Matrix of tariffs and billings systems - MATA 2009]]
-[[tariffs#toc|►Go to Top]]
+[[Tariffs#toc|►Go to Top]]
 '''Lifeline tariff''' - Ghana
 In Ghana multi level tariffs are applied in the national grid. A mixture of pre and post paid tariffs is applied. Consumers with a low electricity consumption get a lifeline tariff which allows them to consume 50kWh at low flat rate of .... If their consumption is higher than 50kWh they are charged a regular tariff.
-[[tariffs#toc|►Go to Top]]
+[[Tariffs#toc|►Go to Top]]
-The Commission while determining the tariff, in the past has kept numerous factors and principles in view, which has already been outlined in the Tariff Regulations. Some of the important measures it has undertaken in the past tariff orders are mentioned below:
+== Example India ==
 *introduction of kWh and time of use tariffs for various categories of consumers
 *slab rationalisation across categories of consumers
@@ Line 69: / Line 81: @@
 The Commission believes that there is further scope for tariff rationalisation across various consumer categories, which will make the industry more competitive, drive growth in the state and attract investments into the sector. The NEP states that consumers below poverty line, who consume below a specified level, say 30 units per month, may receive special support in terms of tariff, which is cross-subsidized. In Himachal Pradesh, such support is currently available to consumers below poverty line consuming 45 units per month. Commission may rationalise the existing slabs for domestic consumers further. The Commission may align the qualification criteria for support in terms of tariff in line with what has been suggested by the National Electricity Policy. The Policy also states that tariffs for such designated group of consumers will be at least 50 % of the average (overall) cost to serve. The Commission will also consider this guideline when determining the tariff for such consumers. It also believes that the future tariff determination exercise will be based on Cost to Serve and under a Multi Year Tariff framework.
-[[tariffs#toc|►Go to Top]]
+[[Tariffs#toc|►Go to Top]]
 === Cost to Serve (CoS) ===
@@ Line 93: / Line 107: @@
 The Commission recognizes that the cost to serve for various consumer categories would require extensive, reliable and credible data and information which is a separate detailed exercise on its own. Therefore the Commission would like the utility to take adequate steps in this regard and make the tariff filing for FY 07-08 on the basis of Cost to Serve instead of Average cost to serve.
-[[tariffs#toc|►Go to Top]]
+[[Tariffs#toc|►Go to Top]]
 === Multi Year Tariffs (MYT) ===
-A Multi Year Tariff (MYT) framework is defined as a framework for regulating the licensees over a period of time wherein the principles of regulating the returns/profits of licensees and the trajectory of individual cost and revenue elements of the Utility are determined in advance. It provides clarity on the rules to be applied over a pre-defined future time period in advance. It seeks to eliminate the control aspects of regulation and replace them with a system of incentives and penalties. In this way, all stakeholders are made aware of the outcome of various actions/events for the pre-defined future time period, and are able to plan accordingly.
+A '''Multi Year Tariff (MYT)''' framework is defined as a framework for regulating the licensees over a period of time wherein the principles of regulating the returns/profits of licensees and the trajectory of individual cost and revenue elements of the Utility are determined in advance. It provides clarity on the rules to be applied over a pre-defined future time period in advance. It seeks to eliminate the control aspects of regulation and replace them with a system of incentives and penalties. In this way, all stakeholders are made aware of the outcome of various actions/events for the pre-defined future time period, and are able to plan accordingly.
 <br/>
@@ Line 105: / Line 121: @@
 In the Tariff Order for FY 2004-05, the Commission directed the Board to submit a proposal for introducing a Multi Year Tariff framework that would allow it to better serve the public interest through economic efficiency, quality and price signals. The Commission believes such a framework is important since there is a need to bring predictability in consumer tariffs and operating efficiency of utility.
-The Commission understands that the introduction of Multi Year Tariff would be faced with the following issues:
+<u>The Commission understands that the introduction of Multi Year Tariff would be faced with the following issues:</u>
 #Information Sufficiency - The implementation of an MYT framework usually requires reliable data. In the absence of adequate and reliable data, targets for efficiency improvement would not be accurate and forecasting would be an issue.
 #Capacity Building - The institutional capability - skills, information and resources available with the utility to develop and monitor the application of an MYT regime - of the licensee is another important issue.
@@ Line 118: / Line 134: @@
 *Commission comes out with a Tariff Order for transitive period
-<br/>
+[[Tariffs#toc|►Go to Top]]
 = Further Information<br/> =
@@ Line 131: / Line 147: @@
 <br/>
-[[tariffs#toc|►Go to Top]]
+[[Tariffs#toc|►Go to Top]]
 = References<br/> =
@@ Line 137: / Line 153: @@
 <references />
 [[Category:Hydro]]