The pricing of electricity through the Electricity Service Pricing Model

This paper is aimed at surveying the method that supports logical and theoretical backgrounds of electricity service pricing, to investigate whether the ESPM can reflect comprehensively the various interests of parties and persons concerned with electricity supply and demand, and analyzing the practical applicability of the model in short-term perspectives. The major findings of this study can be summarized as follows. First, the ESPM explains what process the equilibrium price is attained through, which is the essential concept and object in evaluating the value of public enterprises or utilities and the price of electricity. Second, the ESPM provides the logic and methods that can objectify the discrete price by each electricity user. Third, the ESPM presents theoretical logic and practical methods that can calculate the basic price and the variable price per electricity unit which are key concepts in the two-part tariff. Fourth, the ESPM has powerful practical applicabilities in the reasonable electricity pricing and in the explanation for the balance between parties and persons interested with electricity supply and demand.