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Transport Pricing of Electricity Networks aims at providing a methodological and practical transmission tariff guide, to those who are involved in the electricity business as managers, engineers, lawyers, economists, regulators or policy-makers, but are not specialists in electricity transport, nor in tariff-setting for public utilities. It offers a synthesis of the recent economic research on the subject. The volume is divided into three major parts, each presenting a general aspect of transmission pricing: its legal and accounting background, its basic theory, and its implementation, successively.
How much does it cost to transmit electricity from a nuclear plant close to Lyon in France, to a car manufacturer located in Stuttgart in Germany? What price should a system operator in Canada charge a pulp and paper mill that uses the high-voltage grid for only a few weeks per year? Where in California is it more profitable to reinforce or build a new transmission line? What is the best place to locate a power gas station in England, in order to pay the lowest transmission cost? Such questions are novel and crucial for American and European liberalised electricity markets. Transport Pricing of Electricity Networks shows how the economics toolbox can be used to answer them.
List of contents
I: Economic tariff-setting, law and accounting.- 1: Legal constraints and economic principles.- 2: Cost calculation.- 3: Cost allocation methods.- II: Basic theory.- 4: Cost recovery and short-run efficiency.- 5: Cost recovery and the efficient development of the grid.- 6: Tariffs and Imperfect Competition.- III: Implementation issues.- 7: Guidelines on tariff setting.- 8: Features of transmission tariffs in Europe.- Acknowledgements.
About the author
François Lévêque is professor of Law and Economics at the Ecole des mines de Paris. His academic, teaching and consulting interests are in the areas of environmental policy, antitrust and regulation. His research focuses on the assessment of policy instruments (e.g., access charges for railways, transmission tariffs, eco-taxes, co-venants) and policy reforms (e.g., gas and electricity French and European laws, EU deregulation in railways and airlines industries).
Summary
Transport Pricing of Electricity Networks aims at providing a methodological and practical transmission tariff guide, to those who are involved in the electricity business as managers, engineers, lawyers, economists, regulators or policy-makers, but are not specialists in electricity transport, nor in tariff-setting for public utilities. It offers a synthesis of the recent economic research on the subject. The volume is divided into three major parts, each presenting a general aspect of transmission pricing: its legal and accounting background, its basic theory, and its implementation, successively.
How much does it cost to transmit electricity from a nuclear plant close to Lyon in France, to a car manufacturer located in Stuttgart in Germany? What price should a system operator in Canada charge a pulp and paper mill that uses the high-voltage grid for only a few weeks per year? Where in California is it more profitable to reinforce or build a new transmission line? What is the best place to locate a power gas station in England, in order to pay the lowest transmission cost? Such questions are novel and crucial for American and European liberalised electricity markets. Transport Pricing of Electricity Networks shows how the economics toolbox can be used to answer them.
