Ali Naghi Mosleh Shirazi; Ahmad Taleb Nezhad; Narges Zamani
Volume 2, Issue 8 , October 2013, , Pages 129-161
Abstract
An important discussion that have been going on among decision makers in power industry, is the idea of restructuring and improving the efficiency and competition in this industry. Thereby, Iran power industry has not been an exception, and since early 1370s it has acted to change its organizational ...
Read More
An important discussion that have been going on among decision makers in power industry, is the idea of restructuring and improving the efficiency and competition in this industry. Thereby, Iran power industry has not been an exception, and since early 1370s it has acted to change its organizational structure. Now the main purpose of this study is to survey and determine the necessity for continuing Iran electricity industry’s restructuring programs. In order to achieve this purpose, Using Delphi method, a questionnaire contained 25 questions were made, and distributed among a panel of 11 selected experts. After three rounds, final results were obtained. These results show that in spite of many shortcomings and problems present in Iran power industry, restructuring process of this industry is evaluated as positive and the continuation of the strategies that has been adopted so far, is required and essential.
Jafar Ebadi; Amir Doudabi Nezhad
Volume 1, Issue 1 , January 2011, , Pages 133-179
Abstract
Almost in the entire history of 20th century, vertically integrated monopolistic companies have controlled the electricity industry. In this traditional method, these firms were the only service provider in their territory; including power generation, transition, distribution and retail. Necessity of ...
Read More
Almost in the entire history of 20th century, vertically integrated monopolistic companies have controlled the electricity industry. In this traditional method, these firms were the only service provider in their territory; including power generation, transition, distribution and retail. Necessity of economic efficiency deployment, resulted in structural reform in electricity industry that has created variety of subjects such as restructuring, unbundling, deregulation, reregulation and privatization. Electricity industry restructuring means breaking up vertical monopolistic control of governments on industry through unbundling into competitive and uncompetitive sectors. Electricity distribution sector essentially has natural monopoly characteristics therefore is not competitive and should work under regulation. The main objective of this research is to find the most efficient incentive regulation model for electricity distribution sector of Iran by which social welfare function may be maximized. Price and revenue cap models are the most prevalent incentive schemes that have been compared with each other. To design this model, cost function of 38 electricity distribution companies has been estimated and marginal cost of each company has been assumed as the first best price. Efficiency of these companies has been calculated by means of data envelop analysis method. Afterward 2 price regulation schemes has been modeled for years 1388 until 1390. Finally, residential electricity demand function has been estimated by means of autoregressive distributed lags method. Calculation of the difference between total welfare of each model with the first best price; indicates that without considering air pollution externalities, price cap scheme maximizes total welfare. However, considering the externalities, revenue cap model is found to have better effect on total welfare.
