Evaluating and Optimizing Residential Electricity Price Tiers Considering Income Redistribution Equity Under Cross-Subsidies Mechanisms

The inequitable redistribution of electricity price cross-subsidies constitutes a critical issue, as it compromises the implementation efficiency of tiered electricity pricing (TEP) policies and impedes the equalization of basic public services in the power sector. Drawing on residential TEP data from Hebei Province spanning 2016 to 2020, this paper employs the Gini coefficient method and reveals that high-income residential users receive substantially larger electricity price cross-subsidies than their low-income counterparts. Overall, the degree of such inequality has been rising annually. Furthermore, both high-income and low-income groups exhibit greater inequity in subsidy allocation relative to the middle-income group. Against this backdrop, this paper proposes a more rational tiering framework for TEP by adopting the rank-sum ratio (RSR) method, thereby identifying a viable pathway for residential users across all income brackets to share electricity costs equitably. This research contributes to the sound management of electricity price cross-subsidies, mitigates the inequity in subsidy distribution, and guides residents toward rational electricity consumption behaviors.