ESRI Working Paper No. 743 - February 2023 - Calculating efficient Distribution use of System (DUoS)

Intuitively, this overcomes the distortive effects of the Hotelling-Lerner solution whereby the volumetric tariff guides efficient consumption of the good/service while the fixed ‘standing’ charge guides efficient connection to the network. [...] The cost-reflectivity of network tariffs It is the purpose of this paper to investigate whether Irish Distribution Use of System (DUoS) tariffs follow the cost reflective Coasian principles and to propose a Coasian counterfactual tariff structure for domestic, commercial and industrial consumers. [...] This reflects the fact that much of the costs associated with the delivery of the distribution network do not vary with energy or capacity pro- vision. [...] The views expressed in this paper are those of the authors alone and do not represent the official views of the Department of Finance, Revenue Commissioners or the ESRI. [...] The views expressed in this paper are those of the authors alone and do not represent the official views of the Department of Finance, Revenue Commissioners or the ESRI.