Volume 5, Issue 23 (7-2007)                   cs 2007, 5(23): 33-52 | Back to browse issues page

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Abstract:   (7684 Views)
Developing a targeted and efficient tariff is not only to the benefit of the electricity industry but also is to the advantage of the country economy as a whole. If pricing rests on a scientific basis, subsidies will then be distributed to the benefit of the targeted society. In this research, the theoretical pricing and tariff are discussed. Statistical distribution of the urban electricity consumption is specified for city of Tabriz during 1996-2001 concerning six region using bimonthly data. Different deciles and the corresponding intervals, the growth rates, as well as the consumption were computed. Accordingly, the revenue of the electricity company and the subsidies to the consumers were also calculated. The results indicated that the higher deciles benefited from higher subsidies: for example the 1stdecile has received only 2 percent, while the10thdecile has got about 20 percent. In other words, the top decile has got subsidies almost 10 times that of the lowest decile. This research has proposed a targeted subsidies distribution method which is to the benefit of the poor. The method indicated a policy coefficient ( ) that could direct subsidies to the lower or the upper deciles.
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Type of Study: Research | Subject: Special