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Price Signals from the Electricity Distribution Networks

Miss Rita Shaw, Electricity North West / University of Surrey The paper/ poster explores the current regulatory framework around network pricing and discusses the extent to which this is ‘cost-reflective’. The fourteen electricity Distribution Network Operators (DNOs) provide distribution network services to all the demand and generation customers connected to their networks. Each DNO’s total income is fixed by a price-control regulatory system set by Ofgem. The DNOs set charges for connection and use-of-system in order to recover their allowed income. Their charging methodologies must meet licence obligations to ensure that their charges support development of an efficient distribution system, facilitate competition and, as far as practicable after considering implementation costs, reflect the DNO’s costs. Altogether the charges should provide the right signals to network users about network costs. The issue of fair and cost-reflective pricing was raised by the Sustainable Development Commission’s in-depth review of Ofgem, published in September 2007. The review suggested changes to the structure of transmission and distribution network charges to favour low-carbon generators. One suggestion was a discount on network charges for low-carbon electricity generators. Read more…

Categories: Academic Papers, Electricity and nuclear, Energy and environment

Tags: charges, conference 2008, Distribution, DNOs, Electricity generation, Low carbon, Networks, Ofgem, Power Regulation, Pricing, Regulation, security and sustainability, UK

Cost-reflective-pricing-and-the-electricity-distribution-networks-pres.pdf 282.15 KB

24th
Sep
2008

Downloads Archive

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Price Signals from the Electricity Distribution Networks

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