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The principal objective of each pricing system is to communicate
correct allocative signals and ensure revenue requirement coverage.
A pricing system also should be transparent and practical for
implementation. In an unbundled energy industry each of the
functional system sub-sets – from generation/exploration, to
transmission, system operation, distribution, wholesale trade and
retail supply - should be priced separately. The individual
characteristics of these sub-systems require different approaches
and models for their pricing.
Because of the complexity of the engineering and economic nature
of electricity networks, pricing is one of the most controversial
and difficult elements of the regulation process.
KEMA offers unsurpassed knowledge and expertise in the
transmission pricing area to regulatory institutions, system
operators and system users. Our services cover the full range of
conceptual development, quantitative modeling and practical
implementation in the following areas:- Comprehensive network pricing models, including postage-stamp
and nodal/zonal pricing,
- Generation pricing for IPPs
- Retail pricing models, including multi-element tariff
structures and time differentiation,
- Congestion pricing
- Pricing of ancillary and system services
- Pricing of imbalances
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Related link
For more information on tariffs and pricing
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