Transmission service charge methodology for pool power market

Over the past decade, many countries in the world have embarked on the restructuring with the aim to achieve more efficient electricity supply industry. Restructuring involves with a number of problems but one of the most controversial issue is the development of an efficient transmission pricing methodology. In pool power market, transmission cost allocation is a major issue. It is hard to identify the power contribution of each user in a line since the power output from different power plants are "pooled" together to meet the load demand. Hence, this project attempted to develop a fair transmission pricing structures which include a pricing system that properly reflects all of the costs of providing transmission services. Beside that, this project also involved with determining the best method to trace the power flows from where they are generated until they reach each load. In addition, the development of transmission service charges also has to be fair and equitable to the transmission line users