Determination of Electricity Price in the Peak and Off Peak Times Separately for Each Season in Household Electricity Market of Iran

Abstract

Electricity is a kind of goods or service which can’t be store and economists calls it non storable and if it isn’t consumed in the time it is generated it will be wasted. On the other side because of welfare and living level growth, using of electricity is increasing. Therefore it should be noted that investing on electricity always must be done to handle the growth of electricity consumption especially for handling electricity that is used in the peak load times. In this article it is tried to calculate the electricity price for household segment of electricity market with the help of peak load pricing method for each season in their peak load and off peak times. In this article it is tried to calculate electricity price for public utility service provider and private sector. Also it will be shown that with the current structure in Iran’s electricity industry, why investing in electricity industry is not interesting for private sector.