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An alternative pricing of regulatory components based on adjustments in the relationship between peak and off-peak tariffs in brazil

• Henrique S. Eichkoff
• Daniel P. Bernardon
• Vinicius J. Garcia
• Daiana W. Silva
• Lucas M. Chiara
• Sebastian A. Butto
• Solange M. K. Barbosa
• Alejandre C. A. Pose

(2023). ECMS 2023, 37th Proceedings
Edited by: Enrico Vicario, Romeo Bandinelli, Virginia Fani, Michele Mastroianni, European Council for Modelling and Simulation.
DOI: http://doi.org/10.7148/2023
ISSN: 2522-2422 (ONLINE)
ISSN: 2522-2414 (PRINT)
ISSN: 2522-2430 (CD-ROM)
ISBN: 978-3-937436-80-7
ISBN: 978-3-937436-79-1 (CD) Communications of the ECMS Volume 37, Issue 1, June 2023, Florence, Italy June 20th – June 23rd, 2023

https://doi.org/10.7148/2023-0242

Henrique s. eichkoff, Daniel p. bernardon, Vinicius j. garcia, Daiana w. silva, Lucas m. chiara, Sebastian a. butto, Solange m. k. barbosa, Alejandre c. a. pose (2023). An Alternative Pricing of Regulatory Components Based on Adjustments in The Relationship Between Peak and Off-Peak Tariffs in Brazil, ECMS 2023, Proceedings Edited by: Enrico Vicario, Romeo Bandinelli, Virginia Fani, Michele Mastroianni, European Council for Modelling and Simulation. doi:10.7148/2023-0242

This paper presents a proposed tariff methodology for regulatory components of the distribution system use (TUSD) based on adjusting the ratio of peak to off-peak tariffs (POPR) in Brazil. The main objective of this study is to provide the TUSD component (and energy consumption terms) with lower prices for customers that use electricity for irrigation activities, called "irrigator customers" in southern Brazil. The respective paper is motivated by the relevance of this type of consumer in these regions, and also by the low number of methodologies present in the literature related to this theme. Thus, this article deals with a specific subject of Brazilian electricity regulation that has not been studied very much. The proposed methodology considers for the calculations of the TUSD components, market data of the irrigator customers, in addition to the adjustment in the current POPR to regulate the prices between the peak and off-peak components. The proposed tariff calculation framework considers and compares two analysis methods to define the answer to the problem: (i) TUSD off-peak constant and (ii) Constant TUSD Revenue. The results show considerable reductions in the prices of the Peak Energy TUSD component, making it possible for this method to be employed in the future by power utilities to encourage these customers to use electricity on a larger scale during peak hours.