As a noun phrase, it means what it appears to mean: the value of a service. In the energy industry, it is more commonly used as an adjective denoting a particular method of pricing utility services. Value-of-service pricing is a method of setting utility prices based on the actual value of the service to the customer without regard to the actual cost of providing the service. Value-of-service pricing can result in prices higher or lower than the actual cost of providing the service.

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