MODELING REGIONAL END-USER PRICE COST RELATIONSHIPS IN A WIDESPREAD INTERCONNECTED POWER-SYSTEM/

A combined programming and regression modelling approach is developed to analyse regional retail price/cost relationships for a widespread i nterconnected power system characterised by low population density and uniform (regulated) retail tariffs, The programming model is designed to calculate on the hour the delivered cost of electricity from 5 the rmal power stations and one pumped storage hydrostation to end users i n 8 distribution regions. A simultaneous equation regression model the n analyses the link between retail prices charged end users, regional demand and supply characteristics, industry financial objectives and d epartures from economically efficient pricing, The electricity supply industry in Queensland Australia is used as a framework.