Pricing Transmission Services Efficiently

China’s electricity transmission and distribution tariff mechanism based on sustainable development

“…Then, the electricity transmission and distribution tariff in year (t 0 + m), according to the timely linkage model, can be calculated by Eq. (14).…”

“…In European, under current trends in the evolution of transmission tariffs, only half the volumes of investment currently planned could be funded, so a highly significant increase in transmission tariffs will be required [13]. Meanwhile, the transmission pricing method should be simple, feasible and beneficial to a fair and open electricity market, and should allow easy oversight and inspection of the supervision department as well [14][15][16]. The transmission tariff can be formulated using several methods, and the cost method of accounting and the marginal costing method are mostly adopted [17].…”