TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

multi-block declining tariff [1 record]

Record 1 1984-07-20

English

Subject field(s)
  • Pricing (Electricity)
CONT

One price structure that is generally consistent with economic efficiency is referred to as the two or, more generally, the multi-block tariff. This approach is based on the fact that efficiency requires that price equal marginal cost only for the last unit purchased, so that the price of intramarginal units can be adjusted. For example, under a declining cost situation, with a two-part tariff structure there could be a lump sum or hookup charge and then all units sold would be priced at marginal cost. However, too high a lump sum charge may prevent some customers from purchasing service at all. To avoid this problem a multi-block declining tariff could be used. The last or "tailing" block rate would be set at marginal cost.

French

Domaine(s)
  • Tarification (Électricité)
OBS

dégressif : Se dit d'une somme à payer qui va en diminuant selon certains critères (quantité, durée, etc.) : Tarif dégressif.

OBS

Voir fiche "tarif à tranches".

Spanish

Save record 1

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