Investigating the growth and development of distribution sector assets and the impact of inflation

Abstract

Due to the special importance of asset management and the effects of inflation in increasing the costs of electricity distribution companies, asset growth is proportional to the growth of peak load and the number of subscribers, and also asset development costs should increase with inflation, but this increase It is not equivalent to rising inflation. In this paper, we propose a model for calculating how inflation affects the rate of increase in asset development costs. Then, by numerical comparison in recent years, we prove that in exchange for increasing a certain amount of inflation, asset development costs increase 2 to 3 times.