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Electricity Prices and Cost Factors

Staff research paper

This paper by Chris Sayers and Dianne Shields was released on 30 August 2001. In this study the prices paid by Australian electricity customers were compared with those paid by customers of electricity utilities in Canada, Germany, Israel and the United States. The utilities were chosen to minimise differences in operating characteristics. All predominantly use coal for generation.

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Contents

Preliminaries
Cover, Copyright, Foreword, Contents, Abbreviations, Overview

1 Introduction
1.1 Objective
1.2 Purpose
1.3 Scope
1.4 Approach
1.5 Report outline

2 Electricity supply and pricing
2.1 Economic significance
2.2 Electricity supply
2.3 Price formation
2.4 Factors affecting prices outside the control of the industry
2.5 Residual factors
2.6 In summary

3 Unadjusted residential prices
3.1 Methodology
3.2 Prices
3.3 Sensitivity analysis
3.4 In summary

4 Unadjusted small to medium business prices
4.1 Methodology
4.2 Prices
4.3 Sensitivity analysis
4.4 In summary

5 Unadjusted large business prices
5.1 Methodology
5.2 Prices
5.3 Sensitivity analysis
5.4 In summary

6 Quality of service
6.1 Definitions and nature
6.2 Quality of service comparisons at distribution level
6.3 Influence of quality of service on costs
6.4 Influence of quality of service on prices
6.5 In summary

7 Cost factors outside the control of industry
7.1 Methodology
7.2 Generation
7.3 Transmission and distribution
7.4 Retail
7.5 Other
7.6 In summary

Appendixes

A Participants

B Electricity supply

C Australian and overseas tariffs

Glossary

References