FORMALIZATION OF THE ELECTRICITY PRICING MECHANISM FOR OTHER CONSUMERS OF THE RETAIL MARKET
Abstract and keywords
Abstract (English):
This article deals with a complex and rather unique problem of pricing in the wholesale and retail electricity and capacity markets. The interaction of the electric power industry with the economy resulted in a market conglomerate of planned economy and liberal distribution. The reformers tried to avoid monopoly, which allegedly hindered the market development. The entire post-reform practice proves that private investments are ineffective, prices and tariffs for electricity and capacity keep growing, and energy companies are registered as closed joint-stock companies, which decreases their investment attractiveness. Too many private infrastructure companies stand between the consumer and the electricity supplier. These companies deprive the counterparties of their right to determine the terms and price of the transaction, which contradicts the concept of the market economy. The entire market space of electricity supply is divided into the so-called price categories. Formally, the consumer chooses the price category, but this choice depends on numerous rules, restrictions, and conditions. The article introduces an electricity price calculation model that can be used to make up sales contracts and provides a more transparent understanding of the pricing mechanism.

Keywords:
wholesale market, retail market, price category, one-part tariff, two-part tariff, weighted average unregulated price, marginal price
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