cost benefit reflective distribution charging methodology this paper describes the principle and implementation of a new mw mvar miles charging methodology which was developed to reflect three key cost drivers in distribution network development the distance used to support nodal real and reactive power injection withdrawal the degree of support offered by the network assets and the operating condition of the supporting assets in terms of their power factors the inclusion of the latter driver allows the developed charging methodology to reward network users who are contributing to better power factors and better network utilization while penalizing customers who worsen power factors and network utilization as a consequence the charging model is able to provide forward looking incentives for network customers to behave in a manner to better the network condition which will in turn help to reduce the cost of future network development in addition the separation of real and reactive power pricing would give network users clear indications of the cost of their reactive power draw from the network which in turn could help them to evaluate the economics in investing in reactive power compensation devices the proposed charging methodology is demonstrated on a practical eight busbar distribution system with a mixed demand and embedded generation eg this paper results from work undertaken in a project on distribution charging methodologies for western power distribution the views in this paper expressed are not those of western power distribution

distributed spot pricing in radial distribution systems spot pricing is a method for pricing electricity that maximizes the economic efficiency of the power system the authors derive an expression for the spot prices in a radial distribution system in terms of system quantities such as power line flows the system s radial structure leads to simplified spot price expressions they do not assume that all the problem data is available at one location i e to the utility the proposed pricing algorithm addresses the issue of decentralized knowledge by using a distributed processing scheme which emphasizes local computations they also show how line flow constraints can be implemented as an integral part of the proposed spot pricing algorithm

integration of price cap and yardstick competition schemes in electrical distribution regulation the disadvantages of traditional rate of return regulation for distribution tariffs have led to he development of new regulatory schemes to stimulate efficiency in the provision of the service under what has been called benchmark regulation the paper assesses the chilean model company regulation that aims at making the private distribution monopoly compete with a reference efficient model company through a yardstick competition approach it compares it with the price cap scheme used in electricity distribution in england and wales it contributes with a proposal to integrate both schemes the proposed hybrid methodology is developed and evaluated capturing the best characteristics of both regulatory schemes mathematical models to relate operational costs with electrical variables are developed

distribution pricing based on yardstick regulation summary form only given as follows transmission and distribution t d pricing has been one of the keystones of the ongoing deregulation and privatization process in the power industry the electricity market has been established based on the assumption of open access and nondiscriminatory use of the t d assets as t d business remains as a monopoly it is necessary to provide economic regulation many papers have dealt with transmission pricing and certain maturity has been reached in this area but this is not true in the case of distribution services this paper focuses on the distribution pricing methods and suggests one that is currently under development in brazil this method is based on incremental costs derived from the aggregated expansion plan of a particular utility named model utility this utility was obtained by comparisons among the real distribution companies the method follows the fundamentals of the yardstick regulation

revenue reconciled optimum pricing of transmission services this paper describes a methodology for evaluating an optimal set of transmission prices to be charged for use of a transmission system on a time of use basis the transmission prices are determined by maximising the global benefit of using the transmission system that allocates both capacity and operational costs the security considerations are explicitly taken into account by incorporating security factors in the algorithm the important issue of revenue recovery by the transmission utility is addressed by modifying the optimum prices without affecting the consumer behaviour this can be achieved by setting the prices within indifference intervals over which consumers are insensitive to transmission prices application of the methodology is illustrated on the ieee 24 bus test system

uniform marginal pricing for the remuneration of distribution networks a new method for distribution access via uniform pricing for the remuneration of distribution networks is presented the proposed approach merges in a unified framework the investments the optimal network operation requirements the effect of the price elasticity of demand and the application of hourly pricing for demand side management purposes hourly uniform marginal prices understood as tariffs of use of the network are obtained from maximum social welfare condition sending efficient signals to the utility and consumers related to the optimal operation of the grid and use of the energy at peak and valley hours this method is used in the context of a performance based ratemaking regulation to get model companies from operational optimized real networks capital fees are integrated in the marginal tariff of use by means of the new replacement value concept broadly used in yardstick competition the model is stated as a mixed integer linear optimization problem suitable to be solved through well known linear programming tools the methodology has been successfully tested in a 42 bus test distribution network

vietnam s energy sector a review of current energy policies and strategies abstract since the introduction of market oriented economy in 1986 vietnam has made noticeable socio economic progress in this progress the energy sector has played a vital role this role is likely to deepen in the years to come as vietnam strives to achieve even higher levels in economic progress such deepening in the role of energy this paper argues will heighten concerns about the security of energy supply and economic environmental social and political consequences in order to address these issues vietnam has over the last decade developed a suite of energy policies a deeper review of these policies suggests that they are typified by economic growth orientation exclusive focus on a single sector or single issue and largely neglect the significance of cross sectoral and cross thematic issues arising from the interdependencies between energy economy and the polity at large the existing energy policy settings are therefore unlikely to be able to provide a satisfactory redress to the challenges noted above this paper provides an overview of the current energy policies with a view to identify areas where further policy effort is needed in order to facilitate a sustainable development of the vietnamese energy sector

analysis of reflectivity predictability of electricity network tariff structures for household consumers distribution network operators charge household consumers with a network tariff so they can recover their network investment and operational costs with the transition towards a sustainable energy system the household load is changing through the introduction of photovoltaics and electric vehicles the tariff structures which are currently employed in the eu are either capacity and or energy consumption based in light of the changes in the household load the question whether these tariff structures are the most suitable merits renewed attention in this work the cost reflectivity of various tariff structures has been computed based on a distribution network planning approach next to this the predictability of a network tariff i e how much change would a household experience in network charges in two consecutive years has also been computed to gain insight into how well users will be able to react to the tariff the results show that a peak load based network tariffs score best on the reflectivity while having an acceptable level of predictability the switch from an energy consumption based network tariff which is now most often applied towards a peak load based network tariff should therefore be considered

long run incremental cost pricing based on unused capacity this paper proposes a novel approach for providing long run incremental cost lric pricing in network charges the proposed approach makes use of the unused capacity of an exiting network to reflect the cost of advancing or deferring future investment consequent upon the addition of generation or load at each study node on a distribution network compared with existing approaches to lric pricing the proposed approach produces forward looking charges that reflect both the extent of the network needed to service the generation or load and the degree to which that network is utilized the efficacy of the proposed lric approach has been validated by a comparison with the established investment cost related pricing icrp method used for deriving transmission charges in great brain gb this paper draws on work undertaken in projects for western power distribution and ofgem office of gas and electricity markets u k however the views expressed in this paper are those of the authors

factoring the elasticity of demand in electricity prices as electricity markets are liberalized consumers become exposed to more volatile electricity prices and may decide to modify the profile of their demand to reduce their electricity costs this paper analyzes the effect that the market structure can have on the elasticity of the demand for electricity it then describes how the consumers behavior can be modeled using a matrix of self and cross elasticities it is shown how these elasticities can be taken into consideration when scheduling generation and setting the price of electricity in a pool based electricity market these concepts are illustrated using a 26 generator system

a critical review on energy efficiency and conservation policies and programs in vietnam abstract due to the rapid population growth and economic development energy demand is likely to triple over the next decade in vietnam development and implementation of energy efficiency and conservation eec review the evolution of the government s eec and identify the challenges and provide the recommendations for implementing eec capacity building close coordination among the relevant ministries and the organizations and agencies during the implementation of eec etc should be put forward in the coming years in addition a number of recommendations for promoting ee in three largest energy consumers in vietnam namely industrial residential and transport sectors has been made in this paper

optimal real time pricing of real and reactive powers this paper presents a theory and simulation results of real time pricing of real and reactive powers that maximizes social benefit conventional studies represented the responses of consumers as demand functions and the objective of optimization was minimization of operating cost of power system in this paper the responses of consumers are represented as the inverse of the demand functions and power flow equations are incorporated in the constraints this makes it possible to incorporate constant power factor demand consumer as a participant that also makes it possible to maximize the objective function of optimization that is social benefit of participating in the electricity market and to determine the price of electricity at each bus not only the real time price of real power but also that of reactive power is determined simultaneously by the incorporation of power factor of loads into the constraint of optimization

risk management in use of system tariffs for network users network use of system uos tariffs play an essential role in the deregulated power markets to recover network investment and maintenance costs from network users and send economic signals to influence the users behaviors in using systems the tariffs are essential to the business operation of both network operators and users they however could have great volatility due to the uncertainties from both external and internal factors such uncertain tariffs could bring severe adverse impacts to network users which justifies that there is an urgent need to reduce the tariff volatility and improve its predictability this paper for the first time investigates the variations in network tariffs that cause great risks to network users and then designs financial tools to reduce the volatility the causing factors of the variations are categorized into global and local groups according to their different features after introducing the process from network planning charging to revenue reconciliation the paper discusses the benefits of hedging for network users in order to reduce tariff volatility it proposes a novel risk management strategy to maintain the consistency of tariffs it is achieved by designing long term contracts using financial hedging the value of hedge contracts is decided by three key factors hedged load generation percentage hedged price and risk premium the hedged part is charged at hedged prices and the non hedged part is charged at actual prices on top of which customers needs to pay extra for the risk premium the paper also designs an optimal decision making tool to assist network users to manage long term contracts in order to reduce total tariff costs as demonstrated in the case study the proposed long term products can effectively reduce tariff volatility for network users and create a safe environment for their business operation

bankers at the gate microfinance and the high cost of borrowed logics in this paper we examine how the interaction between influences of commercial banking and poverty alleviation shaped the evolution of modern microfinance using institutional theory as a lens we observe that the commercial banking logic increasingly displaced the microfinance field s foundational poverty alleviation and development principles over time we argue that this process of displacement can occur inadvertently as organizations that embody multiple logics draw disproportionately on only one of those logics when developing legitimating accounts of their activity to stakeholders furthermore we introduce the concept of permeability the extent to which the elements of a logic are ambiguous and loosely coupled to explain why some logics may be more or less open to the influence of other logics we conclude by discussing implications for entrepreneurship and poverty alleviation more generally

the economic efficiency impacts of alternatives for revenue reconciliation about a dozen electric utilities in the us offer rates that possess real time characteristics in these implementations the real time prices are updated at half hourly or hourly intervals and in no case are the prices spatially differentiated the implemented rates are based upon marginal generating costs with markups to account for system transmission and distribution costs or other revenue reconciliation needs this paper analyzes how great is the impact of alternative price markup methods on measures of social welfare and the time pattern of real time prices a case study and sensitivity results are also presented

distribution charges for consumers and microgeneration considering load elasticity sensitivity abstract this paper presents an approach for calculating a tariff for electrical energy distribution systems the methodology is similar to the standard tariff calculation method used in brazil the approach combines the concepts of time of use tariffs and ramsey prices the process initially designed for energy consumers can be used to establish tariffs for micro generation units the resulting regulated distribution tariffs for both consumer and generation units has an hourly signal associated with long run marginal costs moreover while minimizing any loss of social benefits the tariffs comply with the revenue reconciliation constraint the proposed approach is applied to a real brazilian distribution system and compared to the current procedure used by the brazilian electricity regulatory agency

wheeling of power under deregulated environment of power system a bibilographical survey the power industry is moving rapidly from regulated conventional setup to a deregulated environment there is an urgent need to keep a track of international experiences and activities taking place in this emerging field this paper gives a bibliographical survey and general backgrounds of research and development in the field of power system wheeling under deregulated environment based on over 170 published articles wheeling in general and the establishment of wheeling rate in particular are subjects of extensive debate today this will be very much useful for all countries especially those developing countries which are moving toward the unbundling of electricity supply industry esi the collected literature have been divided into many section so that new researchers do not face any difficulty for obtaining literature particularly in the area of wheeling of power under deregulated environment

marginal pricing of transmission services a comparative analysis of network cost allocation methods a strict marginal network pricing policy is not able to generate enough revenues to recover the cost of the primary transmission service other related network services are ignored here this cost recovery problem requires the stipulation of a complementary charge which completes the network marginal revenues this paper evaluates numerically and qualitatively three different allocation methods of the complementary charge marginal participation factors mean participation factors and benefit factors the evaluation has been applied to the spanish electrical system model

cost of wheeling methodologies the cost of wheeling and the methodology by which it is computed is a high priority problem throughout the power industry due to the growth in transmission facilities the cost differentials between utility companies and the dramatic growth in nonutility generation capacity this paper contains descriptions and summaries of computational procedures and data requirements of four embedded cost methodologies two long run incremental cost methods and the short run marginal cost method four methodologies are also presented for allocating the wheeling costs among a number of wheels when simultaneously present on a company s system as required for the standard long run incremental cost method

reliability based distribution network pricing as a tool for network operators to recover network investment costs from network users as well as to provide forward looking economic signals distribution network pricing models are also expected to identify and recover investment costs related to maintaining network security the existing models reflect network security by determining the maximum allowed contingency flow along each component through implementing deterministic contingency analysis they fail to consider two reliability cost drivers 1 reliability levels of network components and 2 interruption tolerance levels at different nodes for the first time this paper proposes a novel distribution network pricing model to reflect two key reliability cost drivers 1 the nodal unreliability tolerance mandated by security standards which is linked to the customer size at the node and 2 the stochastic nature of component reliability that reflects differing failure rates of network components by combining the two factors the new reliability based pricing model is able to recognize the impact on network investment from network components reliability in addition to their distance and the degree of utilization the concept is firstly demonstrated on three small networks a single circuit system a parallel circuit system and a meshed system the applicability of the new pricing approach to practical systems is then illustrated on a practical distribution network in the u k system

framework for assessing the economic efficiencies of long run network pricing models this paper presents a framework for assessing the economic efficiency of different long run network pricing models the aim is to provide a quantifiable efficiency measure that will inform regulators network operators and network users when an alternative pricing model is contemplated the efficiency measure is derived from the long term network development costs that flow from a dynamic interaction between network pricing and planning that is the response of network users to differing charging models the consequential network investment and new financial incentives that follow reinforcement of the network to illustrate the approach the framework has been used to assess the relative efficiency of three broad class of distribution pricing models in a study undertaken for the great britain gb s regulator for gas and electricity markets in england wales and scotland ofgem the study contemplated three pricing models that are used in practice the efficiency assessment in the ofgem study was conducted on a pseudo distribution reference network on the assumption that the results from the reference network could be scaled up to the national level then the assessment suggests that by moving from the present drm model to the more economic lric approach gb distribution network operators could save in the region of pound200 m over the next 20 years in their network investment costs this paper draws heavily on the project undertaken for ofgem but any views expressed are solely those of the authors

a bilevel approach to operational decision making of a distribution company in competitive environments this paper presents a model for operational decision making of a distribution company disco with distributed generation dg and interruptible loads il in a competitive market the disco objective modeled through the upper level problem is to minimize the cost of market purchases and dg unit dispatch while taking into account the responses of the other discos this upper level problem is constrained by a lower level market clearing problem whose objective corresponds to maximization of social welfare such a setting results in a multi disco equilibrium problem formulated as an equilibrium problem with equilibrium constraints epec by combining the optimality conditions of all upper level problems using a nonlinear approach the epec problem is reformulated as a single nonlinear optimization model which is simultaneously solved for all discos the proposed approach is applied to an ac model of a power system to account for voltage and reactive power constraints of the transmission and distribution networks numerical examples based on two test systems are presented to illustrate the application of the proposed method

solving the revenue reconciliation problem of distribution network providers using long term marginal prices in this paper the authors describe an integrated methodology to compute long term marginal prices in distribution networks long term marginal prices are considered the most interesting and economically sound way of allocating network costs to users additionally they inherently deal with the revenue reconciliation problem as they generally do not require other large supplementary tariff terms the proposed methodology uses fuzzy sets to model uncertainties in load forecasts and considers several criteria to guide the identification of solutions at the end there is a final decision making step to select the most adequate expansion plan according to the preferences of the decision maker

a theory of electricity tariff design for optimal operation and investment this study addresses the problem of balancing supply and demand side operation and investment activities existing theory is extended to cover electricity industry models with uncertainty in future conditions and intertemporal linking such as storage and investment an optimal pricing structure which takes these into account is presented it would induce participants suppliers and consumers to make profit maximizing investment and operation decisions which are socially optimal the structure contains two terms a short run marginal cost pricing as well as a new incentive term to account for the interaction of participants at different time points a probabilistic forecast of pricing structures at future time is required a justification of the result and three simple illustrative examples are given