Transmission pricing in Private-Owned electricity Grids: An illustration from the Argentine Electricity Pool
Pricing of electricity transmission grids is a challenging subject, due to the presence of economies of scale and density, lumpy investment, and the requirement to continuously keep the network balanced There exists a demand for regulation not only for protecting grid users from the exercise of mark...
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| Formato: | Objeto de conferencia |
| Lenguaje: | Inglés |
| Publicado: |
1994
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| Acceso en línea: | http://sedici.unlp.edu.ar/handle/10915/171348 |
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| Sumario: | Pricing of electricity transmission grids is a challenging subject, due to the presence of economies of scale and density, lumpy investment, and the requirement to continuously keep the network balanced There exists a demand for regulation not only for protecting grid users from the exercise of market power, but also for guaranteeing certain conditions of System reliability Reliability appears as a special ingredient in the operating efficiency of a transmission network Other transmission characteristics include features such as minimizing distances between generation and demand sites, controlling lead patterns, supplying emergency and security responses, coordinating maintenance, and managing operating reserve. All these special characteristics should be seen as services provided by the transmission activity. The main difficulty, both for the 11 rm and for the regulator, lies in pricing these services, as they are quite cumbersome to cost out In this paper the transmission pricing regime in Argentina is described and analyzed. The high-voltage national grid is owned and operated by a regulated private firm in an electricity market where generation is competitive and, like distribution, is separated from the transmission activity Regulation is rooted in five basic premises: monopoly rights to operate the existing grid, prohibition to sell or buy energy, open access principle, periodic Competition for concession rights, and high-powered incentive regulation on prices and quality The grid owner has not been required to the obligation to expand capacity Instead, a special mechanism has been designed to finance the construction of new lines. |
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