Network financing with two-part and single tariffs

In this paper, we compare two types of access pricing: a two-part tariff where the fixed part aims to cover (part of) the network’s fixed cost while the variable part covers the network’s usage costs and a single tariff where both the usage and (part of ) the infrastructure costs are covered by a per-unit access charge. We compare how the regulator trades-off the degree of competition induced by the access charges and the network financing. (JEL: L11, L51)