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Proposal: new tariff modeling for the electric sector

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Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

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Proposal: new tariff modeling for the electric sector

The growing complexity of the electricity sector requires a new approach ...to adhere it to the new challenges.

Power sources such as solar and wind (centralized and distributed formats) are increasingly important in most countries' matrixes.

Generation, transmission and distribution companies have the main cost of "invested capital", which is essentially FIXED.

But... tariff modeling favors mainly a variable cost structure, centered on the energy consumption of the end user.

My proposal is: tariffs should be essentially fixed (per kW demand) so that they reflect reality. To gain competitiveness, robustness and parity between revenues and costs of the supply and demand sides.

Rafael Herzberg's picture
Thank Rafael for the Post!
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