Understanding the electricity tariff deficit and its challenges

Understanding the electricity tariff deficit and its challenges

Fecha: abril 2013

Autores: María Paz Espinosa

Etiquetas: Déficit tarifario, Mercados eléctricos, Regulación, Electricidad

Spanish and International Economic & Financial Otlook, SEFO, V. 2 N.º 2

Regulators and market participants have become increasingly concerned about the Spanish electricity tariff deficit due to its size and the difficulties to control its growth. The deficit can be traced to inefficiencies in market organization and solutions should be designed to mitigate those inefficiencies. Tariff deficits have allowed for the transfer of part of the present costs of electricity services to future consumers, but this situation has reached a limit and a deep revision of regulation in this market cannot be postponed. In general, solutions that interfere with market prices and signals are not appropriate.

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