Study On Nonlinear Pricing Models And Implementation Methods Of Electrical Retail Tariff

This paper discusses the issues on economic efficiency of electrical retail pricing and cost recovery under the conditions of government strictly controlled and governmental non-compensation. Nonlinear pricing theory is adopted in this article to research on non-linear pricing model and realization under government regulation, and then some electrical retail pricing models are proposed, such as capacity cost allocation model, optimal nonlinear pricing model, optimal multiple-part pricing model, user self-selected tariffs menu and residential increasing block electricity tariff model. This paper made the key findings as follows:(1) The traditional cost allocation method of common costs in all links of generation, transmission and distribution is analyzed in this paper. Focusing on the fact that traditional capacity cost allocation model can't reflect the differences in load characteristics, a new model for power generation cost capacity allocation model considering load was constructed. The model is on the basic assumptions of optimal power supply planning and operation of the optimal conditions, and the analysis showed that the unit load electricity generation capacity cost responsibility depends on the time of occurrence in the application of peak load pricing theory. According to the willingness to pay for marginal capacity, approximate calculation of the generation capacity cost is established for each unit of load. Combined with practical work, this paper sets up a generation capacity cost allocation model considering load. Calculations of an example show that compared with the traditional method, this model can effectively overcome the shortage and gives a reasonable reflection of differences between various load characteristics of customers.(2) This paper gives a depth analysis on the efficiency of differential pricing and uniform pricing. Although differential pricing is often used as a pricing strategy and means to increase profits of a company, it can also be an alternative means to solve the contradictions between cost recovery and efficiency in the price regulation. In the regulation of electrical retail pricing, differential pricing should be allowed to recover costs and improve economic efficiency, and the monopoly behavior for excess profits via differential pricing must be controlled strictly. It will help guide and encourage customers with different characteristics to change their consumption habits, and thus it will promote the efficient use of energy.(3) After the merge sort of electrical retail price, middle electric customers and little electric customers will implement the uniform price, but it is with low efficiency. Then nonlinear pricing theory is introduced to solve this problem. It describes market segments by means of two incremental parameters:dual needs of characteristic function and consumer demand function based on parameters, and then establishes the optimal nonlinear prices and multi-part electricity price model for middle and little electric customers. The model can meet the cost recovery requirements, meanwhile maximize social welfare and reduce unnecessary losses in the uniform pricing by discriminating heterogeneous needs of consumers. Example shows that this model can effectively improve the economic well-being of the uniform pricing.(4) Considering the actual difficulties in promoting the structural adjustment of electrical retail price, a user self-selected menu is discussed and the corresponding of pricing model is established. Under the requirement of cost recovery and constraints of without prejudice to any existing interests of consumers, pricing models can improve the efficiency of uniform pricing to achieve Pareto improvement, simultaneously elimination opposition of structural adjustment between customers and regulators. Therefore it will help reduce the resistance of structural adjustment of electrical retail price in pricing theory from.(5) This paper discusses the necessity of implementing residential increasing block electricity tariff in China in three aspects-the applicable conditions of residential increasing block electricity tariff and residential decreasing block electricity tariff, the important role of residential increasing block electricity tariff in solving the problem of cross-subsidization in electrical retail price and promoting energy saving and emission reduction.This paper presents a scientific pricing method of the electrical consumption level of each block in residential block electricity tariff on the basis of variable-density cluster analysis, the probability distribution function and electrical equipment power estimation method. In this way, the model can determine a reasonable electricity demand for electricity consumption of different income levels of household; at the same time, it can avoid the existence of certain human factors and randomness in process of determining the electrical consumption level of each block. The grades of the method are as follows:the first grade, "lifeline tariff" pricing method is proposed considering the economic affordability of the customers. The second grade, by a comprehensive consideration of transmission and distribution costs transfer method in various voltages and price relations model between different customer classes based on marginal cost, a pricing model reflecting the power supply cost is set up. Ramsey pricing and nonlinear price theory is applied in the third grade and the grade above it, and then the electrical consumption level of each block is determined considering the demand of different customers. Example shows that the method is reasonable.The methodology of Electrical Retail Pricing as well as the methodology of economic compensation is the most important and effective economic instrument for the electric industry to promote energy conservation. The electrical retail price in China will be made by the government in a long period. Research on the nonlinear pricing model and the implementation method of electrical retail price under government control is conducive to reflect the differences in cost and demand between customers. It can improve the efficiency of government pricing and power resource allocation; meanwhile, it plays an important role in the construction of energy-saving society in China.