optimal distribution tariffs in presence of flexible customers in deregulated markets

The issue of variation of distribution tariffs in order for distribution grid companies to maximize their profits in presence of flexible customers is presented. First, present and future regulation of distribution grid companies and the main issues of transmission and distribution tariffs are described. Second, the fundamental theory on consumers´ surplus, grid companies´ profit maximisation are described as well as assumptions and simplifications made in the paper. Third, a numerical example is presented in order to highlight the main issues of the paper. Finally, conclusions based upon the numerical example and the fundamental theory can be found.