Egypt : Development of a Load Management Program and Design of Time of Use/Seasonal Pricing

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world Bank, Washington, DC

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The primary aim of load shifting or peak clipping is to lower the peak demand of the electricity system as a whole or for key parts of the network and thereby to reduce the need for investment in generation and transmission capacity and to lower electricity supply costs. The pricing mechanisms and contractual frameworks examined in the project include conventional Time Of Use (TOU) tariffs that vary by season, day of the week or time of the day as well as special TOU contracts (contracts with large consumers to adjust their regular maintenance activities and/or major annual maintenance), interruptible contracts, and TOU power purchase contracts (purchase of electricity from customers who have excess self-generation). This Final Report is structured as follows; Section 2 provides an overview of the process of TOU tariff setting and rate design, Sections 3 and 4 summarise the experience of TOU tariffs and load management contracts in the MENA region (Section 3) and internationally (Section 4), Section 5 summarises the methodologies used in the development of TOU pricing mechanisms and load management contracts, Section 6 describes the marginal costs which are a key driver of the tariff designs, Section 7 presents the analysis of the demand response to TOU tariffs, Section 8 describes the design of the conventional TOU tariffs, Section 9 discusses special TOU contracts, Section 10 describes the design of interruptible contracts, Section 11 describes the design of TOU power purchase contracts, Section 13 describes the implementation plan for TOU pricing and loadmanagement contracts, there are also annexes providing supporting information and analysis

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AGGREGATE DEMAND, AGRICULTURE, AVAILABILITY, AVERAGE COSTS, AVERAGE PRICE, AVERAGE TARIFF, BALANCE, BIDDING, CAPACITY SHORTAGES, CAPITAL COSTS, CAPITAL EXPENDITURE, CAPITAL EXPENDITURES, CAPITAL INVESTMENTS, CHEMICAL PLANTS, COMMERCIAL CONNECTIONS, COMMERCIAL CUSTOMERS, CONTRACT DESIGN, COST ANALYSIS, COST EFFECTIVENESS, COST OF CAPITAL, COST OF ENERGY, CUSTOMER RESPONSIVENESS, CUSTOMER SATISFACTION, DECISION MAKING, DEMAND ELASTICITY, DEMAND FORECAST, DEMAND GROWTH, DEMAND PEAKS, DEMAND SIDE MANAGEMENT, DEMAND SIDE MANAGEMENT PROGRAM, DEMAND­SIDE MANAGEMENT, DIESEL, DISTRIBUTION COMPANIES, ECONOMETRICS, ECONOMIC ANALYSIS, ECONOMIC BENEFITS, ECONOMIC COSTS, ECONOMIC RESEARCH, ECONOMIC TERMS, ECONOMIC TESTS, ECONOMIC VALUE, ELASTICITY OF DEMAND, ELECTRIC GENERATION, ELECTRIC POWER, ELECTRICAL SYSTEM, ELECTRICITY, ELECTRICITY BILL, ELECTRICITY CONSUMERS, ELECTRICITY DEMAND, ELECTRICITY DISTRIBUTION, ELECTRICITY INDUSTRY, ELECTRICITY INFRASTRUCTURE, ELECTRICITY PRICE, ELECTRICITY PRICES, ELECTRICITY PRICING, ELECTRICITY RATES, ELECTRICITY SECTOR, ELECTRICITY SUPPLY, ELECTRICITY SYSTEM, ELECTRICITY TARIFFS, ELECTRONIC METERS, ENERGY CONSERVATION, ENERGY CONSUMPTION, ENERGY COSTS, ENERGY EFFICIENCY, ENERGY MANAGEMENT, ENERGY PRICE, ENERGY PRICES, ENERGY PRICING, ENERGY SAVINGS, EXPECTED VALUES, EXTERNALITIES, FINANCIAL RISK, FINANCIAL VIABILITY, FIXED ASSETS, FUEL, FUEL COSTS, FUEL PRICES, FUELS, GENERATION, GENERATION CAPACITY, GENERATION EXPANSION, GENERATORS, GOVERNMENT BUDGET, GOVERNMENT WELFARE, HOLDING COMPANY, HOUSEHOLD CUSTOMERS, HYDROPOWER, INDEXATION, INTERNATIONAL ENERGY, INVESTMENT COSTS, KEROSENE, LARGE CUSTOMERS, LNG, LOAD CURVE, LOAD FACTOR, LOAD MANAGEMENT, LOAD PATTERN, LOAD PROFILE, LOAD SHAPE, MAINTENANCE COSTS, MANAGEMENT CONTRACTS, MARGINAL COST, MARGINAL COST OF ELECTRICITY, MARGINAL COSTS, MARKET SEGMENT, NATURAL GAS, NATURAL RESOURCES, NET BENEFITS, NUMBER OF CUSTOMERS, OIL, OPPORTUNITY COST, PEAK DEMAND, PEAK LOAD, PEAK LOADS, PEAK TIMES, POLLUTION, POWER, POWER COMPANY, POWER CONTRACT, POWER INDUSTRY, POWER PLANTS, POWER PRODUCER, POWER PURCHASE, POWER PURCHASE CONTRACTS, POWER SECTOR, POWER SECTOR REFORM, POWER SHORTAGES, POWER SYSTEM, PRICE COMPARISONS, PRICE DIFFERENTIAL, PRICE ELASTICITY, PRICE LEVEL, PRICE LEVELS, PRICE PROJECTIONS, PRICE SCHEDULES, PRICE SIGNALS, PRICING MECHANISMS, PRICING SCHEME, PURCHASE OF ELECTRICITY, RAW MATERIAL, REBATE, REGULATORY FRAMEWORK, RENEWABLE ENERGIES, RENEWABLE ENERGY, RENEWABLE ENERGY GENERATION, RESIDENTIAL CONSUMERS, RESIDENTIAL CUSTOMERS, RESIDENTIAL LOAD, SALES, SPACE HEATING, SPOT PRICING, SUBSTATION INVESTMENTS, SUBSTITUTION, SUMMER PEAK, SUPPLIERS, SUPPLY CHAIN, SUPPLY COST, SUPPLY COSTS, SURPLUS, TARIFF DESIGN, TARIFF INCREASES, TARIFF LEVELS, TARIFF RATES, TARIFF SETTING, TARIFF STRUCTURES, TOTAL SALES, TRANSMISSION CAPACITY, UTILITIES, UTILITY LOAD, VARIABLE COSTS, VOLATILITY, VOLTAGE

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