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Discussion

The total resource cost test compares the programme's cost to

  • A.the utility alone against its avoided supply cost
  • B.the participant alone against that same participant's own bill saving
  • C.the non-participating consumers against their tariff impact
  • D.the utility and the participants together against the avoided supply cost

Answer: D

Counting both parties' costs against the system benefit asks whether society as a whole is better off, which is the broadest of the standard tests. The other three tests ask narrower questions and can give opposite answers.

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