Some considerations on transmission services concerning optimizing wheeling parties' benefits

Abstract

Wheeling is the conveying of electric power from a seller to a buyer through a third party owned transmission network. World wide, there are plans to privatize state-owned utility assets. In many countries, it is hypothesized that competition could improve the economic efficiency achieved by the existing rules of the game. This paper presents the basic concept which uses the share of wheeling gains as a pricing mechanism.