| Load factor is an indicator of the degree of utilization of production capacity.China’s power industry has played an important role in the process of sustained andrapid development of the national economy. But the power industry also produced thelow utilization factor of power facilities such as low load factors and low efficiencyof resource configuration.’Retail electricity price reform program’ which was markedin2003by government proposed a tariff reform envisage under user loadcharacteristics. In2012the country began to develop into retail electricity tariff whichis considering load factor to promote the power industry and national economy intransition from extensive to intensive development. Under the background of loadfactor electricity price reform in China, this paper summarizes the research and policypractice of the foreign load price electricity tariff, using the management of economictheory and other related theories to systematically analyze and research theoreticalbasis, calculation methods and specific policy issues of load factor tariff to laid atheoretical foundation for China to promoting the load factor tariff reform andestablishing perfect load factor tariff system.The research content of this paper is divided into three parts. The analysis will bepresented in the following eight aspects. The first part consists of two aspects of theproposing the load factor tariff issues and domestic and international literature review.This part is mainly based on the national tariff reform task to propose load factortariff issues and research tasks, and then comprehensively analysis and evaluate theresearch status and application from the point of view of economic theory and policyanalysis. The second part is from the second chapter. Although it has not the length ofan article, but has the foundation and guiding significance of tariff issues. This part isfocused on the problems of the tariff study, and designs and proposes a tariff researchparadigm including function, theory, method and policy of load factor tariff research.Meanwhile, this part also established tariff functions, theory, method and policysystem or knowledge platform which is based on load factor tariff research. The thirdpart includes four thematic studies of the load factor tariff，structurally which can bedivided into two modules. The first module is the load factor effect on cost includinguser electricity costs and cost-sharing arrangements. The second module is thespecific research of load factor tariff which includes three aspects. First, it designed the content of the load factor tariff; and then proposed specific computational model;finally, according to the characteristics and requirements of the load factor tariffpolicy implementation, established the optional load factor tariff model, throughsimulation to demonstrator the relevant conclusions. There is a logical orderrelationship in three aspects, which also affect the cost of loading factor mechanism,and follow the four-factor analysis paradigm presented in this paper. Finally, on thebasis of summarizing the conclusions, conclusions and outlook described the mainissues which need a further research.The main research work of this paper:(1) proposing analysis paradigm of thefour elements of the load factor tariff: functions, theory, method and policy, and builda basic framework of load factor tariff even general tariff issues combined a detailedanalysis of the load factor tariff.(2) This paper proposed and designed a combinationof the theoretical basis and development methods of load factor tariff. Based on thefour function of the tariff, this paper proposed the four economic theory of tariffpolicy makers may use on tariff setting under government control, and acomprehensive analysis of the development methods under certain theory methods; Itmeans that we made an evaluative analysis of theory and methods according to thetariff reform policies practice requirements, conducted the conditions of use and theeffect of the theory and methods according to the needs of the load factor tariffresearch, build the load factor tariff problem on a more solid theoretical foundation.(3) We pointed out the mechanism that the loading factor affects the cost. Build thecoupling relationship model among user load factor, while factor and system loadfactor to modify and improve the electricity cost-sharing formula based on the loadingfactor (including simultaneous factor) in particular, the capacity cost-sharingarrangements.(4) The description of composition and characteristics of the loadfactor tariff policy. We established social welfare optimization model of the loadfactor tariff, on the basis of a comparative study on the foreign load factor tariffpolicy, according to the reality of China’s tariff policy,we analysis and definite theeconomic theory reasons,main content of load factor tariff and its relationship withthe other tariffs policy.(5) We proposed a step-by-step optimal long-run marginal costpricing model. Modify and improve the control of economies of scale pricing modelunder Ramsey pricing on the basis of summing up the experience abroad, step-by-stepoptimal long-run marginal cost pricing method theoretically belong to the sub-optimalpricing and practice operability.(6) We established the optional load factor pricemodel. Reflect the characteristics and requirements of the load factor tariff, through the simulations prove the effectiveness of the model and conclusions.Load factor tariff is a new topic. This paper talking about the load factor tarifffocuses on the theory and methods of research. This paper is a systematic innovation,mainly reflected in three aspects.(1) The study of tariff at home and abroad lack basiccontent format, this article based on the load factor tariff proposes the four-elementanalysis paradigm which includes functions, theory, method and policy reflecting thetheoretical logic and practical needs of the tariff study, and providing a unifiedknowledge platform for tariff research and policy analysis. Especially, the analysisconclusion for the structures and processes of the economic theory and method ofloading factor tariff is not only the summary of the tariff research and management atpresent, but also broke the traditional one-way choice thinking having value oftheoretical guidance and policy application.(2)This paper presents a long-termmarginal cost pricing method for the load factor tariff and other tariff. Aimed at thepractical problems of Ramsay electricity prices caused by the lack of price elasticitydemand, based on the summary of long-term marginal cost pricing practice in Franceand other countries, this article presents a three-step method of tariff pricing, as is,based on the long-term marginal cost pricing at first, then the estimated lossapportioning equally to the marginal cost pricing results, at last using the marginalprice adjusted after loss items as the actual execution tariff price. This method ofpricing is ensuring companies to achieve the optimal allocation of resource under thecondition of not losing and at the same time easy to operator.(3) This paper points outthe way to achieve the selectable load factor tariff. The selectable load factor tariffmodel based on mechanism design theory; high load factor users performhigh-capacity electricity prices and low electricity price, low load factor usersperform low capacity price and high load factor tariff, users can make their ownchoices. The simulation showed that the rational choice and electrical behaviormodification will improve users’ welfare and social welfare, achieving the Paretooptimization. |
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