On the electrical two‐part tariff–The Brazilian perspective

This paper discusses, in terms of Brazil's situation, the use of a nonlinear pricing approach in the application of a two‐part tariff to electricity distribution networks. The principles that uphold charging access and usage are to optimize energy systems that are based on a generation technology mix. Such a pricing approach is used in Brazil, where the generation mix is mainly hydro‐generation. This study shows that, in a case like Brazil's, a two‐part tariff may be used as a tool for network optimization. The paper presents a design for a two‐part tariff for a distribution system with varying consumer behavior. To validate the discussion, we offer a numerical example. Finally, remarks are given concerning pricing access and usage for low voltage level consumers.