Optimizing capacity utilization using Ramsey pricing and declining block pricing of unbundled electricity tariffs: The case of Batangas I Electric Cooperative, Incorporated and Batangas II Electric Cooperative, Incorporated

• Main Authors: Frontuna, Andrea Lyka, Gonzalez, Alessandro Jose M., Manundo, Mark Evan M.
• Format: text
• Language: English
• Published: Animo Repository 2005
• Subjects: Electric utilities > Rates > Philippines > Batangas; Electric cooperatives > Philippines > Batangas; Economics
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10713
• Institution: De La Salle University

This research deals with two major electric cooperatives in the province of Batangas, which play a critical role in the development of the region. The initial findings of the proponents show that both electric cooperatives are experiencing under-utilization of installed capacity. Under-utilization of installed capacity reflects inefficiency. This being the case, the proponents look at the possibility that the current pricing scheme that the two electric cooperatives are adopting might be reason for the under-utilization. This research suggests an alternative pricing structure to address this problem.