STEM help / Calculation framework

10.3.5.3 Max change

The change in the actual tariff levied from any one year to the next is constrained by the Max Change input, which represents a maximum ratio of change from one year to the next. This can be used to provide the necessary damping effect to prevent too large a jump in any one year, e.g., regulatory restraints, or instabilities arising from large elasticities of demand.

 

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