1 (v) The following formula is used:
p. p. 5
1 (v) The following formula is used: 2 3 Δ q = q x price elasticity x Δ price / price 4 5 Where: 6 7 Δ q – Is the estimated inefficient usage of a rate class 8 9 q – Is the annual kWh sales to a rate class 10 11 Price Elasticity – Is the p...
AI summary The text discusses a formula used to estimate inefficient energy usage based on price elasticity. It references a -0.15 price elasticity value used by NS Power in the 2024 Load Forecast Report and notes that no inefficiency was observed in 2024 due to Marginal Cost being below unit Revenue. NS Power plans to monitor elasticity values and update them based on annual Load Forecast Reports.