Due to the electric commodity has universal service obligation, the existence of cross subsidy is reasonable. But as the resident demand increasing highly, the range of cross subsidy is expanding which result in unfairness between different residents. In order to encourage residents using electricity reasonably, frugally, fairly and environment-friendly, appropriate method should be implemented as a guide. The paper discusses the necessity of the stepped increasing electricity price and suggests a new idea that retain the peak-valley price while implement the step price. According to analysis, the model can not only recover the distribution company costs but also effectively play the electricity price adjustment demand leverage, which greatly promote the energy conservation, environmental protection and social harmony.
Integrating social responsibility considerations into PCR model: an application of China's electricity price regulation