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Electricity Tariff Structure Review: Alternative Tariff Structures

1 July 2004
By Dr. Hethie Parmesano and Amparo Nieto with former NERA Senior Consultant William Rankin

In late 2003, the Commission for Energy Regulation (CER), the independent body responsible for overseeing the liberalization of Ireland's energy sector, began a comprehensive review of the legacy electricity tariff structure to investigate its appropriateness for the new retail market. A NERA team developed the approach and models used by the Commission to examine the components of existing transmission and distribution tariffs, as well as supply tariffs, and to analyze alternative class revenue allocations and tariff structures. A Consultation Paper describing this work has just been published and CER is seeking comments on it. The methods and results of a marginal cost study conducted jointly by NERA and CER staff as part of the tariff structure review are documented in a separate paper, the Marginal Cost Study. Both papers may be accessed on the CER website.