Application and Prospect of Two-Part Tariff Mechanism in Context of Transmission and Distribution Price Reform

Abstract

In the context of the reform of transmission and distribution tariff mechanism, the drawbacks of the existing two-part tariff system which cannot reasonably reflect the real cost of electricity consumption by power users have gradually emerged. The two-part tariff mechanism is responsible for allocating the space for electricity generation, transmission, distribution and sale tariffs, and regulating the resources of the power system. Therefore, it is urgent to improve the existing two-part tariff mechanism. This paper, focusing on the two-part tariff mechanism, first, introduces the basic theory and billing ratio of the two-part tariff, and studies the method of apportioning transmission and distribution costs based on different load rates and voltage levels. Then, it summarizes the electricity tariff mechanisms such as load rate packages and time-of-use tariffs and the basic tariff mechanisms such as tariff, load adjustments, and improved billing ratios respectively for the collection methods of two-part tariffs. Afterwards, it analyzes the implementation mode of two-part tariff mechanism theory by combining the practical experience of two-part system in the United States, France, Japan, and other foreign countries. Finally, it proposes the future development direction and suggestions of China’s two-part tariff mechanism.

Keywords

• two-part tariff
• transmission and distribution tariff reform
• electricity tariff
• basic tariff
• billing ratio