Analysis on the Ladder Pricing under Supply Curve of Energy

More and more attention is being drawn to ladder pricing because of its superiority in resource conservation. The paper firstly presents a new method for designing ladder pricing under the supply curve, making energy prices could reflect the status quo of energy supply and promoting energy saving. Secondly, based on the linear supply functions, this paper studies the method to divide supply interval under the sectional ladder pricing. A conclusion is obtained: the producers would earn minimal income while supply intervals are equally divided under the condition of ladder pricing. The study also shows that the producers would provide the largest supply under fixed income only if the supply intervals have been equally divided.