The Pricing model for Transmission and Distribution Tariff Under DifferentVoltage Levels Based on the Long-run Marginal Cost Method

Abstract

An incremental load model during peak load period in which both load rate and simultaneity of load is given. To mitigate the influence of irregular putting into operation of transmission and distribution equipment on fluctuation of marginal cost of transmission and distribution, an annuity calculation method of average incremental cost is proposed, and a calculation model based on long-term marginal cost, which can rationally share the expense of voltage classes, is built. According to incremental load during peak load period and the final average incremental cost to be borne by different voltage classes, the transmission and distribution prices for different voltage classes are calculated. Case study on long- term marginal cost of a certain regional power network is carried out, and calculation results show that the proposed transmission and distribution pricing method can reflect economic trend in the future and is favorable to eliminate cross- subsidies as well as make the electricity prices borne by various consumers in different voltage classes more fair and rea- sonable.