Pricing signals for a network business

Cost reflective electricity pricing is fundamental to driving economically efficient consumption and customer behavioural patterns. The objective of cost reflective pricing for a network is different to other sectors of the market. For a network, mitigating peak demand growth is of the highest priority. Prices which signal peak period congestion are thus of primary importance, although this needs to be tempered with the requirement for simplicity with mass-market customers and the capability of retail billing systems.