Introduction
Tariff design or rate design refers to the relationships among the individual prices the operator charges.120
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Chapter IV examines how to set the overall price level. Tariff design is different from most other regulatory issues in that it is one topic area where the interests of the operator and the interests of the government often coincide. In this chapter, we discuss situations where this is likely to hold so that the government can do no better than to allow the operator to choose its own tariff design. We also describe situations where regulation of tariff design might be desirable. We then describe various tariff design options and their properties. We further discuss pricing for the poor,121
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Chapter VI Section C also covers issues of service to the poor. pricing in competitive situations,122
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Chapter II Section B examines other issues related to competition in the market. and demand forecasting.123
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Chapter III Section B also examines issues related to demand forecasting. Following this chapter’s narrative is a list of references, organized by topic.