RATES AND TARIFFS

Electricity pricing (sometimes referred to as electricity tariff or the price of electricity) varies widely from country to country, and may vary signicantly from locality to locality within a particular country. There are many reasons that account for these differences in price. The price of power generation depends largely on the type and market price of the fuel used, government subsidies, government and industry regulation, and even local weather patterns.

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Basis of electricity rates

Electricity prices vary all over the world, even within a single region or power-district of a single country. In standard regulated monopoly markets, they typically vary for residential, business, and industrial customers, and for any single customer class, might vary by time-of-day or by the capacity or nature of the supply circuit (e.g., 5 kW, 12 kW, 18 kW, 24 kW are typical in some of the large developed countries); for industrial customers, single-phase vs. 3-phase, etc. If a specific market allows real-time dynamic pricing, a more recent option in only a few markets to date, prices can vary by a factor of ten or so between times of low and high system-wide demand.

The actual electricity rate (unit cost per unit electricity) that a customer pays can often be distorted by the effect of customer charges, particularly for small consumers (e.g. residential).[1]

Price comparison

As of June 2009, Denmark has the most expensive electricity tariff in Europe with tax included, followed by Italy. Ireland has the highest pre-tax tariff. France has the lowest pre-tax price for electricity in Europe, at 4.75 Eurocents/kWh, and second-lowest price with tax of European countries. A comparative list of June 2009 prices for Europe may be found in the European Household Electricity Price Index.[2]

The following is a rough comparison of electricity tariffs of industrialised countries and territories around the world.[3]

Finland, Sweden and Norway are claimed to have common electricity market. In October 2011 (week 40) the price of electricity was in Finland 33.6 €/MWh, Sweden 12.8 €/MWh, and Norway 3.4-12.8 €/MWh.[4]

Global electricity price comparison

Country/Territory US cents/1kWh As of Sources
Argentina 05.74 2006 [5][3]
Australia 25 2012 [6]
Belgium 29.06 November 1, 2011 EEP[5]
Bhutan 01.88 to 04.40 March 23, 2012 BPC[6]
Brazil 34.18 January 1, 2011 ANEEL
Canada 10.78 January 1, 2011 PEI
China 16.0 (tariff for renewables - not true grid price) January 1, 2011 [7]
Chile 23.11 January 1, 2011 Chilectra[8]
Croatia 17.55 July 1, 2008 HEP
Denmark 40.38 November 1, 2011 EEP[5]
Finland 20.65 November 1, 2011 EEP[5]
France 19.39 November 1, 2011 EEP[5]
Germany 36.48 November 1, 2011 EEP
Guyana 26.80 April 1, 2012 GPL
Hungary 23.44 November 1, 2011 EEP[5]
Hong Kong(HK Is.) 12.04 January 1, 2012 HEC[10]
Iceland 9 to 10 June 1, 2012 OR[11]
Ireland 28.36 November 1, 2011 EEP[5]
Italy 28.39 November 1, 2011 EEP[5]
Israel 12.34 January 1, 2012 IEC[12]
Jamaica 07.35 up to 100 kWh, 16.80 beyond June 1, 2011 JPSCo[13]
Latvia 15.40 November 1, 2011 EEP[5]
Malaysia 07.42 December 1, 2007 ST[14]
Moldova 11.11 April 1, 2011 RUF[citation needed]
Netherlands 28.89 November 1, 2011 EEP[5]
New Zealand 19.15 April 19, 2012  
Pakistan 02.06 up to 50 kWh, for a maximum of 14.62 beyond 700 kWh May 6, 2011 LESCOFESCO
Perú 10.44 2007 PTL[15]
Philippines 30.46 March 1, 2010 [7]
Portugal 25.25 November 1, 2011 EEP[5]
Russia 09.58 January 1, 2012 Mosenergosbyt
Singapore 22.83 April 6, 2012 [16]
Spain 27.06 January 1, 2012 Iberdrola
Solomon Islands 00.84 to 00.90 2012 SIEACBSI
South Africa 05.37 July 1, 2008 Eskom
Sweden 27.10 November 1, 2011 EEP
Taiwan 07 up to 17 October 1, 2008 [8]
Thailand 04.46 up to 09.79 March 5, 2011 BOI
Tonga 57.95 June 1, 2011 [9]
Turkey 13.1 July 1, 2011 TEDAS
Iran 02.00 to 19.00 July 1, 2011  
UK 21.99 November 1, 2011 EEP[5]
Ukraine 03.05 (first 150kWh), 03.95 2011 10[17]
Uruguay 14.47 to 22.89 February 18, 2011 UTE
USA 11.20 2011 EIA[18]
Uzbekistan 04.95 2011 Stroyka.uz[17]
Vietnam 06.20 to 10.01 2011 Reuters

The U.S. Energy Information Administration (EIA) also publishes an incomplete list of international energy prices, while the International Energy Agency (IEA) provides a thorough, quarterly review for purchase.

Forecasting

Electricity price forecasting is simply the process of using mathematical models to predict what electricity prices will be in the future.

Forecasting methodology

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Driving factors

Everything from salmon migration to forest fires can affect current and future power prices. [citation needed] However, when forecasting those prices there are some fundamental drivers that are the most likely to be considered. [citation needed]

Weather driven demand

Studies show that generally demand for electricity is driven largely by temperature. Heating demand in the winter and cooling demand (air conditioners) in the summer are what primarily drive the seasonal peaks around the year in most regions. Heating degree days and cooling degree days help measure energy consumption by referencing the outdoor temperature above and below 65 degrees Fahrenheit, a commonly accepted baseline.[19]

Hydropower availability

Snowpack, streamflows, seasonality, salmon, etc all affect the amount of water that can flow through a dam at any given time. Forecasting these variables allows one to predict the available potential energy for a dam for a given period.[20] Some regions such as the Pacific Northwest get a large percentage of their generation from hydro-electric dams.

Power plant and transmission outages

Whether planned or unplanned, outages affect the total amount of power that is available to the grid.[citation needed]

Fuel prices

The Fuel used to generate electricity at a Power Plant is the primary cost incurred by Electrical generation companies. Particularly, Coal, as a fuel for baseload plants and more important, to a degree, Natural Gas for peaking plants effect power prices.[21]

Economic health

During times of economic hardship, many factories will cut back their production due to a reduction of consumer demand and therefore reduce production-related electrical demand.[22]

See also