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Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/185932
Major Reforms in Electricity Pricing: Evidence from a Quasi-Experiment
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The global energy mix and cost structure of the power industry are experiencing a redefinition. Many countries are revamping electricity-pricing systems to guarantee fixed-cost recovery, often by raising the fixed charge of two-part tariff schemes. However, a key assumption of two-part tariff schemes and associated fixed cost recoveries is that consumers discriminate fixed from marginal costs. We conduct a quasi-experiment with data from a major electricity price reform recently implemented in Spain and find robust evidence indicating that consumers fail to distinguish between fixed and marginal costs. As a result, policymakers are not achieving the goal of cost recovery
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LABANDEIRA VILLOT, Xavier, LABEAGA AZCONA, José María and TEIXIDÓ-FIGUERAS, Jordi. Major Reforms in Electricity Pricing: Evidence from a Quasi-Experiment. The Economic Journal. 2022. Vol. 132, num. 644, pags. 1517-1541. ISSN 0013-0133. [consulted: 7 of October of 2026]. Available at: https://hdl.handle.net/2445/185932