Anwei Grid Tiered Electricity Price Standard

What is Tiered Electricity Pricing (TEP)?

Tiered Electricity Pricing (TEP) is a new electricity pricing method for residential electricity consumption in China, which was developed and used since the 1970s. It can improve the tariffs, the behaviors, and the efficiency of residential electricity consumption.

Is tiered electricity pricing a welfare-improving mechanism?

Although the tiered electricity pricing cannot completely achieve the free-market pricing, it gradually reforms the pricing mechanism of residential electricity in China by raising the marginal consumption price. In the literature, many studies show that the tiered electricity pricing mechanism could be welfare-improving.

What is a tiered electricity price?

The tiered electricity pricing not only increases the average price of residential electricity, but also keeps the cost of electricity use of low-income households unchanged as before, taking into consideration of both efficiency and social fairness.

Does China have a tiered electricity pricing system?

However, in July 2012, the tiered electricity pricing was universally implemented in all provinces in China except Xinjiang, Tibet, Hong Kong, Macao and Taiwan, which obviously could not be used as the control group because of their specialty.

How does a tiered electricity pricing policy affect residential electricity use?

Therefore, the tiered pricing reform has a significant impact on the decline of residential electricity use, and can achieve the policy goal of motivating the residents to save the energy use. Secondly, under the tiered electricity pricing policy, the stronger the policy intensity is, the more the residential electricity use will drop.

What determines public acceptance of tiered electricity price reform in China?

Determinants of public acceptance of tiered electricity price reform in China: Evidence from four urban cities. Applied Energy, 91(1), 235–244. Wang, Z. & Tang, H. (2012, May 11). Hearing on residential tariff held and over 80% households no expenditure increase.