RAP_Icons_v1_Pricing and Rate Design

Smart Rates to Ensure Fair Compensation

Rate design—the framework utilities and regulators use to set prices for the reliable provision of electricity and energy services—influences consumption and investment decisions across the full range of resource choices: energy efficiency, demand response, and traditional and distributed generation. Prices must reflect the true economic costs of providing energy services, which reflect other market and non-market values, such as environmental performance, resource capabilities, and fluctuations in supply and demand over time.

We help utility regulators apply well-established principles to design smarter rates that maximize the value of technology innovations, open up new markets, and accommodate the distribution and diversification of customer-sited generation resources.

Our Focus

Our experts help regulators weigh the benefits, costs, and net value of energy system resources on both sides of the meter, and design rate structures that ensure fair compensation for all who provide energy supply and services. As utility regulators apply the principles that have evolved over a century of regulation to local conditions in their jurisdictions, we advise them to ensure forward-looking rates that maximize the value of investment decisions by both the utility and customers and benefit society overall.

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Events

February232017
Upcoming Event

From programmes to markets – how to leverage market forces for energy efficiency

The International Energy Agency (IEA) and RAP are conducting an in-depth analysis for the G7 on the design of market-based instruments for the delivery of energy efficiency. The study examines market mechanisms and economic instruments, such as auctions and tendering programmes, utility obligations, and white certificates, analysing the choices that policymakers face and the key…

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March12017
Upcoming Event

Flexible and Customizable: Designing Decoupling for Your State (Webinar)

Under traditional regulation, utilities make more money when they sell more electricity. Yet this equation can conflict with the public policy objectives of utility and environmental regulators. In response, some states have adopted or are considering utility revenue regulation—or “decoupling”—to mitigate risks to utilities and consumers, and to deal with potential revenue shortfalls caused by…

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March12017
Upcoming Event

Winter Package Symposium

ClientEarth and RAP host a symposium designed to assess the key issues and challenges around the “Clean Energy For All Europeans” package of legislative proposals. Experts will focus on the impact of the proposals on consumers, efforts to secure resource adequacy, and whether the proposals promote renewable resources and flexible markets. Programme 08.30  Registration 09.30…

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March132017
Upcoming Event

Energy Efficiency and Regulation

At this two-day training event on energy efficiency policy and regulation hosted by the Energy Regulators Regional Association (ERRA) in Budapest, Hungary, Dr. Jan Rosenow of RAP and Zsuzsanna Pató of the Regional Centre for Energy Policy Research will discuss regulatory issues surrounding end-use energy efficiency programs, including metering and energy efficiency obligation schemes. Also…

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