- Advances in Regulatory Economics series
Edited by Michael A. Crew and Paul R. Kleindorfer
Chapter 10: Costing the Universal Service: Evaluating the Demand Response
10. Costing the universal service: evaluating the demand response* Isabelle Carslake†, George Houpis‡ and Christian Strobel§ 1 INTRODUCTION This chapter follows on from our previous contribution (Houpis et al., 2009) and seeks to evaluate the demand response to a change in service specification. We seek to evaluate customers’ potential responses to a universal service provider (USP) reducing the scope of its services. This task will be part of an evaluation of the net cost of the universal service obligations (USOs) by policy makers or other stakeholders adopting the profitability cost approach and/or of any USP considering changing their service specification.1 As there is limited direct information on actual demand responses to the re-specification of the USO, the use of a combination of sources will typically be required to reach a conclusion on the demand response (PricewaterhouseCoopers, 2009). Our chapter presents a highlevel approach, using pre-existing evidence on the drivers of demand, to make an initial assessment of the potential demand response to changes to a USP service specification. The structure of the chapter is as follows. In Section 2 we present our approach to estimate customers’ responses to a change in service level with a discussion of the types of research available for its application. In Section 3 we illustrate the approach with existing data, and we conclude in Section 4. 2 APPROACH Our approach seeks to use existing research on the topic to reach a conclusion on the possible demand response following a re-specification of the USO. USO costs...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.