Abstract:
The retail electricity of a monopolizing distribution company still have to be regulated after the real-time price (RTP) is utilized in the retail electricity market since the market is monopolized. The distribution will target profit maximization but its retail price is affected by regulation policy. The impacts of the policy of the price cap or revenue control regulation on retail price are analyzed by comparing the affect of the optimal price of Ramsey. The results show that the retail price under the price cap is higher than the one under the Ramsey. The price under the revenue control is lower than the one under the Ramsey in the valley periods, while higher in the peak periods. The example demonstrates the proposed conclusions