Fair Tariff Research Articles

Теоретичне підґрунтя публічного управління у сфері водопостачання та водовідведення

The sphere of water supply and drainage is a critically important component of the socio-economic mechanism, which is characterized by numerous challenges that were actualized in wartime. Aim of this paper is to analyze the main theoretical approaches of public management in the field of water supply and drainage in order to identify the main principles and tools that affect the efficiency and sustainability of the field. The tools of strategic planning, operational management and emergency response are considered as key components of successful management in this area. Emphasis is placed on the special role of developing fair tariff policies and financial support for infrastructure investments. The importance of the legal framework that regulates the sphere, ensuring compliance with environmental standards and protection of consumer rights is highlighted. The environmental aspect of resource management in the field, which includes modern methods of wastewater treatment and minimizing the negative impact on natural water bodies, is considered. It was emphasized that state intervention is a key factor in ensuring equal access to clean water, which is a basic human right according to the United Nations. The problem of natural monopoly in the field is considered through the prism of high capital investments and low elasticity of demand, which limit market competition. Strategies to stimulate competition and improve service quality are explored, including regulating tariffs and encouraging innovation. The example of Scotland, where water supply management is centralized through the creation of a single national company Scottish Water, reveals the effectiveness of such an approach in improving infrastructure and ensuring high quality services with public participation. The importance of a multidisciplinary approach to management in the field is emphasized, with a special emphasis on the stability of the service in wartime. The research may be useful to researchers, state and local authorities, and international organizations. Further perspectives of research include the study of the peculiarities of the application of the theoretical base in the solution of scientific and practical problems in the field in Ukraine during the war.

Increasing access to piped water for poor households: an analysis of water connection subsidy projects implemented by the GRET

Abstract By 2030, Sustainable Development Goal 6 aims to ensure universal access to safe drinking water. The Royal Government of Cambodia has, thus, made a significant progress in improving the access to safe water supply in rural areas. However, results show only 26.9% of all poor households in a license area were connected when supported by the Groupe de Recherches et d'Echanges Technologique (GRET) programs compared to 45.6% of all households; nearly half of all poor households are located greater than 70 m or are of unknown location; and 56% of known households are within than 3 km. Logistic regression shows a negative relationship between household connections and increasing distance by 10 m, incremental water tariffs by 0.10 USD, and subsidized connection fees by 10 USD when compared to connections, with odds of connection decreasing in all cases (−23, −8.6, and −1%, respectively). Finally, 37% of unconnected households have never heard of the subsidy programs, indicating insufficient marketing programs. Recommendations include updating subsidies to cover all costs necessary for households to connect within 50 m of the distribution lines (an extra pipe, transaction fees, etc.); ensuring flat-rate connection fees paid by all poor households including all costs remaining 40 USD or less; subsidizing pipe extensions to reach unserved areas while maintaining fair tariffs for poor households and cost recoverability for piped water suppliers; shortening marketing and awareness programs to 3 months or less, with involvement from more local stakeholders; and adding poor household connection requirements to investment program requirements.

Effect of the subsidised electrical energy tariff on the residential energy consumption in Jordan

The application of a fair tariff for electricity pricing is aimed at controlling demand and promoting sustainability by motivating homeowners to use household appliances as well as heating and cooling systems that offer increased energy efficiency. It is possible to structure the price levels such that customers (typically those who have increased demands for electricity) are encouraged to lower their overall demand. The reorganisation of electrical subsidies within the residential sector has considerable importance for the country’s economy as well as for more effective management of the consumption of electricity and the resulting effects on the environment, which lays the foundation for more sustainable development. In the current research, data from 260,000 regular customers paying standard electricity tariffs were gathered and the energy usage of in excess of 1,000 energy-subsidised District Electricity Distribution Company (IDECO) members of staff was recorded over a period of two years (2017 and 2018). A comparison was made between the two aforementioned groups to investigate the outcomes of energy subsidies on energy usage as well as consumption patterns within the residential sector. The results of the analysis indicated that on average, normal homeowners used approximately 297 kWh/month, whereas customers whose electricity was subsidised consumed approximately 615 kWh/month. In both winter and summer, there was an increase in the amount of energy consumed, particularly among those receiving subsidies, as the demand for heating and cooling was raised. The application of electricity tariffs (with no subsidisation) provides a means of controlling the demand profile that is particularly effective. The structure of tariffs can motivate customers (typically those electricity consumption levels are high) to lower their overall consumption in addition to peak demand (which has the consequence of limiting the strain on the grid and power stations) by requiring them to pay for electricity at maximum prices.

The Application of Activity Based Costing Model to Calculates The Unit Cost Services In a Hospital

For welcoming the era of Universal Coverage in 2019, Indonesia has encouraged hospitals to be able to determine their service costs properly without being distorted, as happened in traditional costing models. This study aims to examine service costs in hospitals based on the Activity Based Costing method. The accurate calculation of the costs will encourage fair tariffs for patients and other payers, such as BPJS or other health insurance. The results of this study show that the service costs in the ORIF surgery of Femoral Shaft Fracture based on the calculation of the unit cost using the ABC method are about 10% lower than that based on the traditional hospital’s costing method. This study concludes that the ABC method provides a fairer calculation of service costs for patients, according to facilities, processes (treatment activities), and the use of resources during the treatment. Since this ABC method eliminates useless activities that can trigger more costs, effectiveness and efficiency can be achieved to support the cost control and quality control in hospitals

Subsidies for public passenger transport in Brazil - a sustainable mobility issue

The present paper analyses how the public transport fare is calculated in Brazil. The choice of the research theme is related to the impact that tariff price has on the access to urban public transportation, especially since the people who most use this mode of transportation are the least favoured ones, and therefore, those most in need of public policies that help establish fair tariff prices. The first part of the article contains an analysis on the tariff calculation in the Brazilian public transport system. From this definition, it was concluded that extra-tariff funds in Brazil are very small, so it was necessary to research different forms of subsidies used in other countries, as well as legal innovations found in Brazil, to suggest new ways of operation, which can increase the demand for the system, and consequently, increase the injection of funds in the sector. With the increase in revenue, public transport can gain in technological innovations for the sake of sustainability, contributing to lower carbon emissions to the atmosphere.

On the Ways of Development of Railway Business (1910)

110 years ago, the professional railway community conducted sharp discussion on the ratio of commercial and state interests in domestic railway activity. There were attempts to use that criterion to classify the existed railways by directions and main business purposes. The discussion also referred to the aspects of monopolism and competition, strict government control over the costs of rail construction, distribution of dividends or their investment in future development, fair tariffs. The problem of, in modern terms, connectivity of territory touched upon the choice between enhancing transit capacity of main railroads and constructing of new less important railways in the regions where they have not been built yet. Quite particular topic referred to the need to pay more attention to training of economic skills of employees as to condition of successful commercial activity of railways. It concerned training of technical employees in railway vocational schools, and of the future executives in higher schools, provided that «in the nurseries of railway engineers who provide a contingent of heads of railways, students are given complete economic preparation for their future activities».

Design of tariff schemes as demand response mechanisms for stand-alone microgrids planning

Stand Alone Microgrids provide electric energy to isolated communities when the grid’s extension is not feasible. However, Stand Alone Microgrids face technical, financial, and regulatory challenges before reaching most rural populations. This paper explores how energy tariffs and public subsidies for rural electrification are related to the optimal operation and design of Stand Alone Microgrids. It aims to propose a holistic methodology to determine the optimal sizing, optimal energy management, optimal tariffs, and public subsidies for Stand Alone Microgrids using Disciplined Convex Programming. The study guarantees the convexity of the proposed formulation and the uniqueness of the optimal solution by following the rules of Disciplined Convex Programming. A case study shows a non-negligible impact of time-varying tariffs over the sizing, energy management, and fuel consumption. Compared with flat tariffs, using a variable tariff reduces costumers’ payments up to 21% and diesel consumption of 11%. However, investor profits can be reduced by up to 18%. In this regard, the study reveals and propose a solution to the challenge that governments and policymakers face trying to define tariffs to attract private investors interest in funding rural electrification projects on one side, and create fair tariffs for the customers on the other side.

Capital asset pricing model, beta stability, and the pricing puzzle of electricity transmission in Brazil

This paper seeks to analyse and propose alternative procedures to estimate the cost of equity through the capital asset pricing model (CAPM) in the context of electricity transmission in Brazil. Under the assumption that a stable beta is important for regulatory purposes since it provides institutional security for investors, as well as fair tariffs for consumers, we test different options to find the set of parameters that provides the most stable beta for the transmission sector. This paper is prescriptive in nature and attempts to offer alternative options for the cost of equity estimation, without changing the theoretical framework (i.e., CAPM) proposed by the Brazilian regulator. To pursue our aim, we test beta stability by modifying three CAPM elements: the risk asset, the proxy for market returns, and the length of the estimation window. By applying robust structural break tests, we show that the desirable beta stability may be reached with the use of a Brazilian pure-play global beta estimated with an 11-year estimation window.

Women & Lobbying, 1924 – 1936 Part 3: American Voices in a Changing Democracy: Women, Lobbying, and Tax 1924-1936

This Part of AMERICAN VOICES IN A CHANGING DEMOCRACY: WOMEN, LOBBYING, AND TAX 1924-1936 turns from a general examination of women and lobbying during the 1924–1936 time period to a specific look at some women’s tax lobbying Although women’s groups generally did not focus on tax issues, there were occasions when they did so. The Part demonstrates the variety of tax activities women’s groups engaged in by briefly describing the activities of four groups: the National Housewives’ League, the Women’s Nonpartisan Fair Tariff Committee, the National Federation of Business and Professional Women’s Clubs (NFBPWC) and the League of Women Voters. Together, these groups, as their names indicate, represented women in a variety of their roles ranging from their traditional domestic roles as housewives to women in their more public roles as newly enfranchised citizens and growing participants in the paid work force. The tax issues they engaged in reflected their membership running the gamut from housewives concerned with taxes on consumer products to income tax exemptions for single businesswomen. In my research for this path-breaking survey of early women’s tax lobbying book, I have found evidence of several other clubs’ involvement with tax issues but not specifics. I believe that an extended, methodical (and laborious) searching through individual collections of clubs’ meetings and reports as well as papers of some of the important women members would uncover more details about women’s groups’ activities in tax lobbying. Even such a search, however, might not reveal the full extent of women’s activities because I have discovered that many women’s groups did not keep detailed official records and written evidence, if it ever existed, may have disappeared or be hidden in someone’s attic.

Restructuring a Water Distribution Network through the Reactivation of Decommissioned Water Tanks

Water resource management is a topic of great environmental and social relevance, since water must be preserved and managed to avoid waste, providing high quality service at fair tariffs for the consumer, as imposed by the European Water Directive (2000/CE). In the rehabilitation of a water distribution network, it may be suitable to recover decommissioned water tanks, if any, rather than afford high construction costs to build new ones. In this case, the assessment of the residual service life of these concrete structures affected by steel bar corrosion is the premise for the design of new pipeline routes, connecting them. For this aim, rather than carrying tests that can accurately determine mechanical properties of the dismissed water tanks, it is possible to empirically estimate their level of degradation. Their conditions infer on the expected life of the restructured water distribution network. However, they allow the aqueduct to be used for its technical duration, assumed to be equal to the decommissioned water tanks residual service life in the case they do not require maintenance. Here, a simplified model for the assessment of the residual service life of decommissioned water tanks is first proposed and then applied to a case study, consisting of a part of the water network managed by “Ausino S.p.A. Servizi Idrici Integrati”, Cava de’ Tirreni, Italy. Once the service life is assessed, the QEPANET plugin is used in QGIS to speed up the design of the new pipeline routes in the georeferenced space, thus overcoming the limits offered by the classic EPANET solver.

Fair tariff policy in insurance: Theory and methods of calculation

Fair tariff policy in insurance: Theory and methods of calculation

Factors Affecting Fee-Setting for Dental Services in Iran’s Private Sector: Dentists’ Perspective

Background and Objectives: In Iran, the private dental sector is the main provider of dental services, however, the price of services that are charged by them is unclear. This study aimed at evaluating the factors affecting fee-setting for dental services delivered by dentists in the private sector and the relative value of services. Methods: In this cross-sectional study, the census sampling method was used among dentists working in the private sector of Kerman city, Iran. The data were collected through a researcher-made questionnaire, the validity and reliability of which were established. Descriptive statistics and Pearson’s correlation coefficient were used to analyze the data. Results: Of the 252 qualified dentists, 147 (58%) participated in this study, of whom 61.5% stated they had reduced their prices to attract more patients and 67.4% mentioned that there is a competition between dentists in attracting more patients. The tariffs applied by the dentists were within the range of government approved tariffs. After the dentist’s wage (42.3%), the most important factors that affected tariff setting included office rent (18.6%), raw materials (15.2%) and staff’s salary (12.6%). Disease severity, dentistry error, dentist’s skill and visit time length should be considered in determining the relative value of services and setting a justified and fair tariff. Conclusions: It is necessary to take appropriate measures by dental health authorities to increase the competition between private dentists in order to decrease prices in favor of patients. Also, due to differences in performance, experience and materials used by dentists and other factors, it is necessary to set maximum and minimum values for tariffs.

Methodological Problems to Develop a Fair Tariff for Thermal Energy

Methodological Problems to Develop a Fair Tariff for Thermal Energy

Tariff calculating model for natural gas transportation through open access transmission pipeline with multi tariff system to increase gas usage as clean energy

The purpose of this study is to model the different tariffs on the transportation of natural gas through a pipeline for several shipper classes in an open access natural gas pipeline transmission line called a multi-tariff system. The determination of the natural gas tariff through the Open Access pipeline in Indonesia is mostly set using a distance system with the same value for all types of the shipper. The principle of justice is considered to be achieved from uniform tariffs for all the shipper, whereas in practice the separation of tariffs for each shipper group is currently essential. The proposed new tariff modeling is done by modifying the initial equations of the single-tariff model. Besides giving a new model proposal of tariff calculation for the multi-tariff system, in this research will also be modified free cash flow for new tariff calculation scheme and will be done the validity test on the formula. So that will get a multi-tariff calculation model which can become one of proposal material enter for Regulators to be able to set a fair tariff for the shipper without changing the economics of the transporter and can produce competitive gas prices to substitute clean energy sources for certain consumers such as electricity generation.

Solar Feed-In Tariffs: Examining fair and reasonable retail rates using cost avoidance estimates

Growing Solar Photovoltaic (PV) electricity systems in geographically diverse regions presents a complex policy problem for governments. During 2013-16, the Queensland government in Australia, examined establishing a fair and reasonable retail Feed-in Tariff (FiT) policy, noting it regulates state retail electricity consumption prices. A combined cost avoidance and stakeholder analysis was applied to show that determination of a fair and reasonable FiT for all stakeholders, while aspirational, is difficult to achieve. Typically, agreement on a fair tariff rate will depend on stakeholders’ relative position in energy supply chains (service providers, retailers, suppliers, customers, advocates), and interpretations of fairness that can be shaped by competition in the supply area. Also, increases in financial benefits to PV customers might be considered unreasonable by non-PV customers and retailers that experience increases in electricity prices and operating costs. Importantly, the application of a retail FiT in regional and isolated areas requires careful energy policy design, taking account of network losses, remote and isolated customer metering, cost effective network control technologies, and diesel generator operating limits. The study also observed that shifting funding of FiT schemes from electricity distributors to competitive retailers will likely have negative consequences for retail FiT offerings and PV customer servicing.

Storing Electricity in a Country's Electrical Grid as a Key Energy Problem of the 21st Century

Basic problems of optimizing the structure of a country's electrical grid by incorporating storage facilities and renewable sources of energy into the grid are formulated, and the authors’ vision on how to approach some of these problems is offered. A game model for analyzing the potential of an electrical grid with storing facilities to serve its customers and for finding fair (equilibrium) electricity tariffs in it is discussed, and an elementary scheme for estimating advantages of using these fair tariffs by a customer of the grid is proposed.

Load commitment in a smart home

Although demand response (DR) potentially brings miscellaneous advantages, it is currently faced with challenges in its implementation due to customers’ difficulty in manually responding to the time-varying prices. This paper presents an optimal and automatic residential load commitment (LC) framework to achieve the household minimum payment. Problem decision variables are the operating status of responsive appliances and charging/discharging cycles of battery storage and plug-in hybrid electric vehicles (PHEVs). Storage capability in residential centers provide the customers with this opportunity to not only supply the local demand during the high price hours but also sell the energy back to the utility. The optimization-based LC shifts the responsive loads to inexpensive periods which rationally coincide with the valley of consumption profile. As a matter of fact, the peak to average ratio (PAR) of the load profile would likely decrease which, although might be unappealing to the customers, is desirable from the utility viewpoint. Direct load control (DLC) is also modeled by using the proposed LC approach. In the DLC program, a customer receives a rather fair tariff allowing the utility to control a set of specific devices. Customer inconvenience is considered as the factor restricting a complete DLC realization. Numerical simulations are conducted to illustrate the proposed notions and to verify the efficiency of the developed model.

Value chain analysis of the natural gas industry: Lessons from the US regulatory success and opportunities for Europe

The aim of any value chain & network analysis is to understand the systemic factors and conditions through which a value framework and its firms can achieve higher levels of performance. The upstream oil & gas business is increasingly stimulated for growth by federal legislation (e.g. tax credits unconventional gas plays), while the corporate earnings in the US midstream and downstream energy segments remain strictly regulated and constrained by FERC and state regulators. This study concisely describes the physical and the financial value chains of the US natural gas business in a systemic fashion. The value chains of the natural gas industry are governed and interconnected by a regulatory decision-making framework. Legislation and regulation by the US Congress for the upstream energy value chain traditionally aim to facilitate the development of domestic natural gas fields. Likewise, FERC regulation maximizes access to the midstream gas transmission segment and provisions for fair tariffs for all shippers. State regulators protect the end-consumers in the downstream value chain by providing guidelines and rulings in rate cases. Corporate energy development decisions are critically impacted by such energy policies and regulations. Long-term, mid-term and short-term measures are distinguished based upon the duration of their impact on the performance of the US natural gas market. The present analysis of the physical and financial value chains and the regulatory framework that governs the US natural gas market provides new insights on appropriate policies and regulatory strategies that could improve both the liquidity and security of supply in the European gas market. Strategic and tactical instruments for maximizing returns on investment for regulated energy utilities are also formulated.

Incentive mechanisms for cost revelation with intermodal competition

To set regulated utility prices that are sustainable against uneconomic bypass alternatives, regulators must estimate the costs of the alternative bypass technologies; this entails a series of theoretical and institutional problems that regulators cannot practically resolve. This paper now develops a simple incentive mechanism that effectively solves those problems associated with producing an optimal amount of bypass. In the suggested procedure, regulators use readily available accounting data to specify one two-part tariff that covers the utility's revenue requirements and is deemed fair by regulators and consumers; as long as it offers this fair tariff, the company may subsequently offer as many alternative tariffs as it sees fit, including some particularly aimed to deter bypass. This procedure gives a utility the correct incentive to determine its own and its rivals' cost structures; with accurate cost information, the utility will design a menu of tariffs that would eliminate uneconomic bypass and would be responsive to changing cost conditions in the emerging bypass markets.