Pricing utilities for large-scale chemical production site

Pricing utilities is one of the major important economic evaluations in the chemical production industry. Usually, company will evaluate its utility price several times per year for chasing the market condition. With the proper pricing strategy, the actual values of utilities can be reflected, which would allow the company to make correct business decision. This paper recommends a new procedure to develop a strategy for the chemical production site to ste up utilities prices to reflect not only its real economic values or production costs but also to provide a better signal for business decisions. Using "Marginal Values Analysis" (MVA) technique is one of the effective ways for the pricing policy and this technique will be adopted for pricing. It is believed that with the proper utilities pricing, overall energy usage will be rationalized that generates merit to the company. © 2006 Elsevier B.V. All rights reserved