Full Title: Primer on Primary Drivers of Electricity Tariffs for Utility Regulators
Author(s): John D. Quackenbush
Publisher(s): National Association of Regulatory Utility Commissioners (NARUC), United States Agency for International Development (USAID).
Publication Date: April 12, 2021
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With the support of the United States Agency for International Development (USAID) – Energy Division, Office of Energy & Infrastructure, the National Association of Regulatory Utility Commissioners (NARUC) has undertaken the task of developing a Cost Reflective Tariff Toolkit. This toolkit is intended to constitute several short practical primers that can be used by utility service regulators in countries with emerging economies to design rates that are based on actual cost of service and to effectively engage the public and key stakeholders in the decision-making process.
The objective of this primer is to help utility regulators around the world understand the primary drivers of electricity tariffs based on the revenue requirement concept, with a specific focus on the expenses that are incorporated into revenue requirements. These components are primary drivers of effective cost-based ratemaking and developing cost-reflective tariffs.