By Topic

Distribution access pricing: application of the OFTEL rule to a yardstick competition scheme

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$33 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

2 Author(s)
E. Recordon ; Dept. of Electr. Eng., Pontificia Univ. Catolica de Chile, Santiago, Chile ; H. Rudnick

The paper formulates an access-pricing model applied to electricity distribution, based on the UK Office of Telecommunications (OFTEL) model, originally structured to price telecommunications monopolistic-essential facilities. The aim is to achieve an optimal access price charge, in an environment where a distribution network monopoly serves both regulated and nonregulated customers. The nonregulated market faces competition, so that the competitors must use the network to reach their customers. A usage-based hybrid model is proposed to couple with a tariff scheme for regulated customers that uses yardstick competition. A way to set appropriated opportunity costs by the use of the OFTEL model is introduced. Finally, the paper focuses on properly recognizing both regulated distribution and competitive supply costs. The scheme is assessed within the Chilean regulatory scheme, proposing a way to establish marginal and fixed distribution costs for distribution companies.

Published in:

IEEE Transactions on Power Systems  (Volume:17 ,  Issue: 4 )