Electricity tariff making : case of Nepal

AuthorShrestha, Sanjaya Man
Call NumberAIT Thesis no.ET-92-17
NoteA thesis submitted in partial fulfillment of the requirement for the degree of Master of Engineering
PublisherAsian Institute of Technology
AbstractIn this study electricHy truiffs are strnctmed basing on the principl e of marginal costs of supply. Wein Automatic System Planning (WASP) model is used for gene ration of least cost expru1sion plan. Marginal costs of capacity and energy are calculated at all voltag('S levels by seasons and by periods of <lay. Marginal costs of capacity costs are determined on the basis of average of incremental capacity cost method while marginal energy costs '1rc obtafoe<l from r.he producr.ion simulation method. Transmission and distribution investment costs are accounLed in capacity costs whil e customer related costs are not considered. Strict marginal costs are modified to achieve viability and social equity consideration. Residential low income conswners a.re subsidized for existing determined consumption lewl. Othe r residential consumers are charged at adjLtsted marginal costs at 10.05 cents/kwh. Revenue Joss due to subsidization is recovered through charging high to industrial n11 d consumers leaving industrial low voltnge consume rs aside. Time of d<ty tariff is struc tured for high 1md medium voltage industrial ru1d commercial consumers only. A ll consw1w rs other than residential, industrial and commercial are charged according to others tariff. FJasticHy values are assumed for residential, industrfa.1 and commerciaJ conswners basing nn past studies. Tariff increase results in 9.44% decrease in energy consumption in 199 1 for 1isswned elasticity vaJues. For revised load forecast. new optimwn expaJ1Sion plan is generated. New tariffs are formulated following same structure as in first iteration. Low income consumers of residentiaJ sector m·e charged at 2.8 cents/kwh whjle otJ1er con um 1 s of this sector are eharged a t 10.05 cents/kwh. Time of day tariff and other t ariffs are found 1.o be lower in second it.eratfon thim t.hal. .in first iteration. For this study upw second iteration tariffs are calculatec.l due t o 1<1ck of time. However further iteration can be pursued t o obtaiJ1 optimal tariffs. Tariff obt<iine<l after second iteration are 136.14% m1d 214.06% highe r compared to existiJ1g tariff strnct.ure for low income and non-low income r esidential consw11ers. Tariffs for industrial, commercial and other consumers are very high relative to existing ones. Calculated 1.ariffa aJe meru1t only for development of tariff making framework.
Year1992
TypeThesis
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC))
Academic Program/FoSEnergy Technology (ET)
Chairperson(s)Shrestha, R. M.;
Examination Committee(s)Mohanty, B. ;Zhai, Y. ;Amin, A.T.M.N.;
Scholarship Donor(s)The Government of Austria;
DegreeThesis (M.Eng.) - Asian Institute of Technology


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