A Comparative Study on the Effects of Peak-load Pricing Under Price Cap Regulation

The reform of electricity price is the core of electricity deregulation,and reasonable price should be an organic unity of price level and price structure.An examination of the effects of peak-load price in different price cap forms,dawns on us that the price cap regulation has the effects of cost-recovery.Comparing with absolute price cap regulation,the relative price cap regulation is more advantageous while the peak-load price in such regulation tends to be the Ramsey Price with a possibility to maximize social welfare.At the same time,for relative price cap regulation,whether using Laspeyres Price Index or Paasche Index,the effects are identical.