Binomial tariff: an alternative modality to Brazilian low voltage consumer

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Paper number
2254
Working Group Number
Conference name
CIRED 2019
Conference date
3-6 June 2019
Conference location
Madrid, Spain
Peer-reviewed
Yes
Short title
Convener
Authors
Cardoso Borges dos Santos , Lorena, CPFL, Brazil
Eduardo de Barros Alvares, Jairo, CPFL, Brazil
de Oliveira Gomes, Rafael, CPFL, Brazil
Cesar Barioni de Oliveira , Carlos, Daimon, Brazil
da Silva Silveira, Cristiano, Daimon, Brazil
Antonelli, Denis, Daimon, Brazil
Abstract
Since 2016, low voltage end-consumers supplied by voltages lower than 2.3 kV (73% of the energy consumption market in Brazil) has no more obligation to be charged in the monomial tariff modality.This paper describes a proposal for the implementation of binomial tariff for low voltage consumers. The proposed modality has the objective of: (i) guaranteeing a fair allocation of costs of the grid, reducing potential cross-subsidies; and (ii) introducing a stabilizing effect on distribution companies' B-segment revenue against strong market reduction scenarios as well as the avoiding distortions due to current tariff structures in the existing monomial structure.The methodology was developed through a R&D project sponsored by CPFL Energia, which holds four distribution companies responsible for the supply of 9.4 million customers in Brazil.In addition, Brazilian Electricity Regulatory Agency (ANEEL) opened last December a public hearing to discuss the regulatory impact analysis of some alternative binomial charging. This paper compares its proposal with one of ANEEL’s alternative, which considers a fixed cost differentiated by number of phases and consumption ranges.
Table of content
Keywords
Publisher
AIM
Date
2019-06-03
Permanent link to this record
https://cired-repository.org/handle/20.500.12455/773
http://dx.doi.org/10.34890/996
ISSN
2032-9644
ISBN
978-2-9602415-0-1