A Goal Programming Approach to Peninsular Of Malaysia Electricity Tariff Structure


Noriza Mohd Saad,Zulkifli Abdullah,Nora Yusma Mohamed Yusof,Norhayati Mat Husin,Ahmad Lutfi Mohayiddin ,Mohamad Taufik Mohd Arshad ,




Goal Programming, Electricity,Tariff Structure,Optimization,


Tariff design is the key mechanism used to allocate electricity generation and distribution costs to customers. The designing process can be very complex not only due to the regulatory policies surrounding it but also due to the need of satisfying various parties such as the electricity distributor and the different types of electricity customers. Therefore, it is the aim of this study to formulate an optimum tariff structure for Malaysia that can deal with multiple objective functions. Utilizing secondary data gathered through various energy related sources and a goal programming approach, a new optimum tariff structure has been proposed specifically focused on domestic customers and others in general. The findings show, in the case of domestic users, having only two bands of domestic customers instead of the current practice of five, may have already helped to achieve an optimum tariff structure. The findings also show that for other types of users Malaysian current tariff structure may have yet to achieve its optimum level. While these findings are subjected to few limitations, it is notable that the findings can be used to evaluate the existing tariff structure of Malaysia.


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