Cost-causation based approach in forming power-based distribution network tariff for small customers

Abstract

This paper discusses the development of electricity distribution network tariffs. In the paper, the present state of distribution network tariffs of small customers is discussed together with key future challenges of the distribution network business. As a potential solution to these challenges, power-based tariffs of the small customers are discussed and preliminary results of a case study are presented where tariffs are formed by applying data of one Finnish Distribution System Operator (DSO).