Electric rate question: Europe revisited. A report on pricing theories, electric rate making practices, and utility operation in France, England, and West Germany. [Economics of European electric industry disproved]

Book · Thu Jan 01 04:00:00 EST 1976

OSTI ID:7253365

Nissel, H E

A visit with representatives of the electricity supply industries in France, England, and West Germany was made to update knowledge of the pricing theories, rate-making practices, and operation of electric utilities in these countries and to evaluate and compare results with those in the U.S. The latest information on technical and financial performance and the effect of the oil crisis on rate-making policies were obtained. The reason for initiating this investigation at the present time was to test the validity of certain claims repeatedly advanced by U.S. rate reform advocates as to the effectiveness of time-of-day marginal cost rate structures used in England and France and alleged to improve the system load factor and to reduce generating capacity requirements, producing thereby multimillion dollar savings. Some U.S. promoters of incremental cost or LRIC pricing went so far as to scale up these claimed savings in proportion to U.S. generating capacity, maintaining that American utilities would save billions of dollars per year if they would only adopt French and English rate-making practices. This report demonstrates, however, that U.S. supporters of these claims never examined them critically. If they had, they would have found that these assertions are not borne out by readily available facts concerning the French and English electric power systems. They do not withstand close inspection and indeed may even be said to be self-serving. This investigation and analysis of the facts prove beyond reasonable doubt that no reduction of generating capacity, and hence no multimillion dollar savings have been achieved, either in France or England as a result of consumer responses to ''price signals'' supposedly embodied in the electric rates of those countries.

• OSTI ID: 7253365
• Report Number(s): NP-21986
• Country of Publication: United States
• Language: English

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AVAILABILITY
CHARGES
COMPARATIVE EVALUATIONS
ECONOMIC POLICY
ECONOMICS
ELECTRIC POWER
EUROPE
FRANCE
GERMAN FEDERAL REPUBLIC
LEGISLATION
LOAD MANAGEMENT
MANAGEMENT
NORTH AMERICA
POWER
POWER GENERATION
PUBLIC UTILITIES
UNITED KINGDOM
USA