Question

Q4
(a) Briefly discuss the objectives of tariff in a deregulated electricity industry
(b) (i) What are the basic objectives of restructuring electricity industry globally

Answer 1

a) Objectives of Tariff deregulated electricity industry:

• To improve the service and to extend the facilities by providing the electricity with reasonable demands.
• To develop the competition in generation and supply by improving the cost panel on consumer-side.
• To econimise the system.
• To improve the reliability by proper adjustments of cost divisions.
• To create the best policy between the owner and end user.
• To reduce the price margin to satisfy the consumers.
• To maximize the utility from end-user side.
• To understand the price tags clearly by end-users.
• To increase the consumers choice by proper planning.
• To satisfy the consumers by proper structure between the companies.

b) Basic objectives of restructuring electricity industry:

• To reduce the emissions from industry which are effected the climate change.
• To increase the efficiency for consumer-side
• To reduce the losses in the energy conversion by properly using of energy storage facilities.
• To increase the reliability in renewable energy generation.
• To establish a proper framework that allows Energy Service Companies (ESCOs) to support the consumers.
• To enhance the accountability for end-users & society through customer choice.
• To Implement a market-based approach to the society and also for environment.
• To improve the quality and continuity of supply on consumer-side.
• To increase the quality by developing the competition between the companies for consumer support.
• To improve the usage of electricity and efficiency by restructuring in price charts.
• To replace the equipment by advanced technology.