Efficient pricing on distribution network tariffs

Apolinário, Isabel; Barros, Cristina Correia de; Coutinho, Hugo; Ferreira, Liliana Silva; Madeira, Bruno Gini; Oliveira, P.; Trindade, A.; Verdelho, P.

doi:10.1049/cp.2009.1082

Cited by 4 publications

(5 citation statements)

References 2 publications

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“…This maintains the relationship between rates for the various consumer categories and tariff periods. In this case, the LTMCs are used as coefficients to recover total costs [16, 17, 23]. Another solution uses additive coefficients, that is, adding the same amount to all rates, thereby maintaining the absolute difference between categories and periods, keeping consumers from shifting consumption from one period to another as a result of the adjustments [22].…”

Section: Methodologies For Allocating Distribution Costsmentioning

confidence: 99%

“…One such criterion, found in several proposals, is to assume that the cost of the closest grid of a given group of consumers (typically, the grid for their voltage level) is recovered by the capacity charge, for grid design is regarded to follow local peak demand. The cost of the more distant grid (higher voltage levels), by contrast, is recovered by an energy‐use charge in the peak period, because this peak is assumed to be responsible for cost in that part of the grid [16, 23]. In [22], it is proposed to recover local distribution grid costs with a fixed charge, and the transmission and high‐voltage distribution grid costs with a capacity charge (or an energy‐use charge, where smart meters are installed).…”

Section: Methodologies For Allocating Distribution Costsmentioning

confidence: 99%

“…Charges are commonly established in terms of the consumption cosine or tangent expressed as a phasor (cosine of phi), although this parameter oversimplifies the reactive power issue, particularly for large accounts. Charges that penalise reactive power consumption in peak periods and its generation during off‐peak periods are often implemented [23].…”

Section: Methodologies For Allocating Distribution Costsmentioning

confidence: 99%

“…Portuguese tariff design methodology is described in [7] and specifically applied to distribution in [23]. Tariffs are based on LTMC in order to avoid cross subsidies among consumers, although what is actually calculated is LTIC.…”

Section: Ltmc-based Distribution Pricingmentioning

confidence: 99%

“…Charges that penalise reactive power consumption in peak periods and its generation during off-peak periods are often implemented [23].…”

Section: Reactive Power Ratesmentioning

confidence: 99%

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Distribution pricing: theoretical principles and practical approaches

Reneses

Ortega

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Section: Methodologies For Allocating Distribution Costsmentioning

confidence: 99%

Section: Methodologies For Allocating Distribution Costsmentioning

confidence: 99%

Section: Methodologies For Allocating Distribution Costsmentioning

confidence: 99%

Section: Ltmc-based Distribution Pricingmentioning

confidence: 99%

“…Charges that penalise reactive power consumption in peak periods and its generation during off-peak periods are often implemented [23].…”

Section: Reactive Power Ratesmentioning

confidence: 99%

See 3 more Smart Citations

Distribution pricing: theoretical principles and practical approaches

Reneses

Ortega

2014

IET Generation, Transmission & Distribution

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Electricity Tariffs

Reneses¹,

Rodríguez²,

Pérez-Arriaga³

2013

Power Systems

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DSO tariff structures: development options from stakeholders’ viewpoint

Honkapuro

Tuunanen

Valtonen

et al. 2014

International Journal of Energy Sector Management

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Purpose – The purpose of the paper is to analyze the development needs and opportunities in the distribution system operators’ (DSO) tariff structures in the smart-grid environment. Design/methodology/approach – The impacts of the distribution pricing schemes for the stakeholders and their requirements for the tariff structures are evaluated by qualitative analyses. Furthermore, there is a case analysis concerning the practical development possibilities of the DSO tariff structures in Finland. Findings – Major finding of the paper is that the demand-based power band tariff is the optimal solution for the DSO pricing structure, when taking into account the real-life limitations and the requirements of the stakeholders. Practical implications – Outcomes of the paper can be applied in practice in design of the pricing schemes in the electricity distribution. Incentive provision impacts and cost reflectivity of the DSO tariffs can be improved by implementing the suggested pricing structure. Originality/value – The paper provides a novel viewpoint on the study of the DSO tariff design by considering the impacts of the pricing for the stakeholders and their requirements for tariff structure. Furthermore, the real-life limitations in the tariff design have been taken into account by analyzing the development options in Finland. Results are useful, especially for the DSOs, regulators and academics, who are working with the tariff development issues.

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Efficient pricing on distribution network tariffs

Abstract: This paper presents and discusses a methodology for the calculation of efficient prices on distribution network tariffs. Tariffs should reflect costs and assure the absence of cross subsidies between clients.

Cited by 4 publications

References 2 publications

Distribution pricing: theoretical principles and practical approaches

Distribution pricing: theoretical principles and practical approaches

Electricity Tariffs

DSO tariff structures: development options from stakeholders’ viewpoint

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