Fairness and Reasonableness Tariff Indicator (FRTI) to Meter and Compare Rate Policy in the Electricity Regimes. The Case of Argentina in 2022

Abstract

The tariff policy for energy services is a fundamental issue for today's societies, especially for end users, including residential, commercial, and industrial. The main objective of this paper is to propose a statistical method to calculate, compare, and evaluate policies of this nature. To this end, firstly, it is intended to rethink an old concept on this type of policy, the principle of fairness and reasonableness, through the linkage with the perspective of human rights, specifically with the right to energy, the right to the city, and the recognized right to adequate life and housing. Secondly, through a mixed methodology that combines quantitative and qualitative elements, the dimensions of this principle are described and then operationalized as statistical variables within a mathematical formula, the FRTI. Subsequently, the behavior of each variable is explained as a linear function. For this purpose, we take as a case study the data on energy policy in Argentina in 2022. Finally, conclusions are drawn on this first application of the FRTI, improvements for the indicator and future lines of research are proposed to make the FRTI a tool for both policy makers and academic workers.