Transmission and Distribution Pricing Method Based on Long-Run Marginal Cost and Its Application in UK HP Distribution Pricing

doi:10.3969/j.issn.1000－7229.2016.07.009

Abstract

Abstract: Transmission and distribution pricing is one of the important tasks of electricity market reform. This paper systematically summarizes and analyzes the long run marginal cost method in the transmission and distribution pricing, presents the definition of the long run marginal cost in the transmission and distribution pricing, and analyzes the key links in the calculation, including the mathematical method of marginal cost calculation, the calculation method of branch marginal cost, the selection of base operation mode, the cost allocation method, the tariff structure of users, etc. Finally, this paper introduces the actual application case of long run marginal cost method in distribution pricing- the EHV Distribution Pricing in UK, analyzes and compares the two pricing methods with using simple calculation principle, and proposes some suggestions for the application in China based on the specific condition of our country.

Key words: electricity market, distribution pricing, three-part electricity price, long run marginal cost, cost accounting

CLC Number:

TM 743

CHEN Zheng, XIE Wenjin, ZHANG Xiang, JING Zhaoxia, LENG Yuan. Transmission and Distribution Pricing Method Based on Long-Run Marginal Cost and Its Application in UK HP Distribution Pricing[J]. Electric Power Construction, 2016, 37(7): 64-70.

References

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