• DocumentCode
    2988400
  • Title

    Is capacity cost allocation according to long-run marginal costing principles correct?

  • Author

    Dingley, Charles

  • Author_Institution
    Dept. of Electr. Eng., Cape Town Univ., Rondebosch, South Africa
  • Volume
    2
  • fYear
    1996
  • fDate
    24-27 Sep 1996
  • Firstpage
    988
  • Abstract
    In the long-run marginal cost approach, all power system capacity costs are charged to peak-period users. This paper presents a simple “shared-cost” model as the basis for a fundamental discussion of capacity-cost allocation. Based on this analysis, the paper suggests that the long-run marginal cost approach might not be correct
  • Keywords
    costing; economics; tariffs; electricity tariffs; long-run marginal cost approach; peak-period user charges; power system capacity costs; shared-cost model; Africa; Australia; Cities and towns; Costing; Costs; Pricing;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    AFRICON, 1996., IEEE AFRICON 4th
  • Conference_Location
    Stellenbosch
  • Print_ISBN
    0-7803-3019-6
  • Type

    conf

  • DOI
    10.1109/AFRCON.1996.563030
  • Filename
    563030