1 AIT Asian Institute of Technology

A marginal cost-based electricity tariff for the Mindanao power grid

AuthorBenolerao, Vicente Dy
Call NumberAIT Thesis no.ET-85-3
Subject(s)Electricity--Economic aspects
NoteA thesis submitted in partial fulfillment of requirements for the degree of Master of Engineering, School of Environment, Resources and Development
PublisherAsian Institute of Technology
AbstractThe use of marginal cost analysis offers an alternative approach in formulating an pricing policy for the supply of electricity. Traditional approaches deal in historical investments attributed to electricity supply; the marginal cost approach provides a pricing policy that is based on future investments necessary to meet an incremental demand in capacity and energy. The study estimates the marginal cost structure for the Mindanao Power Grid of the National Power Corporation in the Philippines. It shows that present pricing policy does not approximate costs of future capacity additions necessary to maintain a reliable service. Likewise, the disparity in the supply cost of electricity at peak and off-peak periods requires the adoption of a time of day tariff that promises to ensure an efficient utilization of the resource.
Year1985
TypeThesis
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSEnergy Technology (ET)
Chairperson(s)Lucas, N.J.D.
Examination Committee(s)Sauter-Servaes, Florian ;Codoni, Rene
Scholarship Donor(s)Government of Japan
DegreeThesis (M.Eng.) - Asian Institute of Technology, 1985


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