Criteria for the assessment of demand side management measures in the context of electricity sector regulation

Abstract

In the present regulation of electricity sector, the distribution companies, acting as the electricity public system (SEP) supplier, can promote demand side management (DSM) measures. In order to promote the implementation of these measures, the Tariff Code establishes that the implementation costs of a measure and half of the net benefits will be reflected in the SEP supply tariffs. In this paper we analyze different criteria for valuing DSM measures, evaluating its effect in benefit cost ratio of the measures, in its merit order, in the total benefits value and, lastly, in the value that will be accepted in the SEP supply tariffs. It is shown that despite the attribution of high environmental premiums for the implementation of DSM measures, the costs for ton of CO/sub 2/ avoided are more reduced than those which would result from the implementation of equivalent measures from the supply side.