If transmission charges are to reflect costs, they should be affected by the location of demand and generation. This paper describes the investment cost-related pricing (ICRP) methodology used to calculate transmission charges in Great Britain (GB), which is based on the marginal investment cost of additional demand or generation, using a dc load flow transport model. We apply this existing method to calculate charges for the Supergen FutureNet scenarios for 2020. This study highlights the sensitivities in charges for use of the transmission system arising from plausible demand and generation developments. The changes in tariffs will present financial challenges for system users in some areas. The objective of the work presented is to illustrate the sensitivity of the charges produced by this methodology to changes in demand, generation, and network topology rather than compare alternative pricing approaches. The conclusion drawn is that the ICRP system pricing method may be suitable in future years but only with some important issues investigated and resolved.
- power systems
- energy charges