ABSTRACT

The role of electricity pricing, primarily as an instrument for effective demand management and conservations was discussed in Chapter 2 in the context of integrated national energy planning. The coordinated use of both price and nonprice policy tools was stressed. Pricing of rural electricity services is based on the same basic principles and considerations as general electricity tariff getting. However, the special issues particular to rural energy supply (summarized in Chapter 1) require additional analysis. This chapter begins with a review of the general methodology for power pricing. 1 It concludes with a section on the particular constraints and problems of pricing rural electricity.