Modelling the two-rate electric power tariff taking into account the social consumption norm: the case of Volgograd city

This article describes the current processes of liberalization of the electric power industry in Russia. By 2011, according to Russian government plan, 100% of electric power in the wholesale market will be sold at open prices. These open prices will be propagated to retail markets of electric power. In the context of completion of RAO UES of Russia reengineering the problem of consumers (first of all, citizens) interests' protection becomes topical. In this paper we suggest a mathematical model of the electric power tariff. Given this tariff consumers buy energy within the established social norm at lower price, and over it – at higher, economically reasonable, price. We provide an example of the suggested tariff for the case of Volgograd electric power retail market.