Transport Pricing of Electricity Networks
Transport Pricing of Electricity Networks aims at providing a methodological and practical transmission tariff guide, to those who are involved in the electricity business as managers, engineers, lawyers, economists, regulators or policy-makers, but are n
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Transport Pricing of Electricity Networks by Fran~ois Leveque Ecole des Mines de Paris, France
Springer-Science+Business Media, B.V
A C.I.P. Catalogue record for this book is available from the Library of Congress.
ISBN 978-1-4419-5355-1 ISBN 978-1-4757-3756-1 (eBook) DOI 10.1007/978-1-4757-3756-1
Printed on acid-free paper
All Rights Reserved © 2003 Springer Science+Business Media Dordrecht Originally published by Kluwer Academic Publishers, Boston in 2003 . Softcover reprint of the hardcover 1st edition 2003 No part of this work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming, recording or otherwise, without written permission from the Publisher, with the exception of any material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work.
Contents
Contributing Authors Preface by Jean Syrota General Introduction by Fran90is Leveque
Xl
xv XVll
Part I: Economic tariff-setting, law and accounting
1
Chapter 1: Legal constraints and economic principles
3
FRANCOIS LEVEQUE
Chapter 2: Cost calculation
35
NICOLAS CURIEN
Chapter 3: Cost allocation methods
73
NICOLAS CURIEN
Part II: Basic theory
103
Chapter 4: Cost recovery and short-run efficiency
105
CLAUDE CRAMPES
Chapter 5: Cost recovery and the efficient development of the grid RICHARD GREEN
137
vi
Transport pricing of electricity networks
Chapter 6: Tariffs and Imperfect Competition
155
ANNE PERROT
Part III: Implementation issues
173
Chapter 7: Guidelines on tariff setting IGNACIO J. PEREZ-ARRIAGA AND YVES SMEERS
175
Chapter 8: Features of transmission tariffs in Europe
205
JEAN-MICHEL GLACHANT
Acknowledgements
225
Index
227
List of Figures
Figure 1-1. Figure 1-2. Figure 1-3. Figure 1-4. Figure 1-5. Figure 2-1. Figure 2-2. Figure 2-3. Figure 2-4. Figure 3-1. Figure 3-2. Figure 4-1. Figure 4-2. Figure 4-3. Figure 4-4. Figure 4-5. Figure 4-6. Figure 5-1. Figure 5-2. Figure 5-3. Figure 8-1. Figure 8-2. Figure 8-3.
Uniform pricing discrimination Perfect discrimination Imperfect, third order discrimination Two-part tariff discrimination N on discrimination for a meshed network Interconnection pricing example Universal service funding example Economies of scales Fully distributed costs From Shapley to Aumann Supportability and non-supportability One line network Three-line network Out-of-merit-order optimal dispatch No capacity constraint, same valuation at both nodes Binding transport capacity, nodal marginal valuations of energy diverge Optimal allocation with energy losses Willingness to pay for transmission capacity in a twonode network Optimal level of transmission in a loss-less network A detrimental grid expansion Comparison of EHV and HV tariffs for the same type of consumer Comparison of three types of consumer: A, B, and C Tariff comparison for three types of consumer
17 17 19 20 24 38 41 53 61 82 85
110 110 112 124 124 125 139 140 151 213 2
