Transmission pricing mechanism of UK power market and its application in China

UK is one of the earliest countries that power industry was deregulated. In 2001, new power market model had been put into practice. The calculation model of transmission charge in UK power market is mature. This paper firstly introduces the mechanism of its transmission pricing from the point view of the connection charge, the transmission network use of system charge and the balancing services use of system charge in detail. Then transmission network use of system charge of a regional grid in China is calculated based on UK's model and several conclusions are draw. The result shows that this method not only provides effective economical signals for power producers and customers, but also guarantees the balance of annually revenue for the grid company. It is worthy of studying for our country.