Transmission pricing practices: A review

Deregulation of power industries provides competition in the monopolistic market. Countries are gaining attention to restructure the power system market through deregulation. The applied deregulated restructuring policies provide assurance for technical and economical benefits to generators and customers. Requirement of restructuring in generation, transmission and distribution system under deregulated structure has proven its importance. As the Power industries have a large and complex transmission network, restructuring in the existing transmission system is a challenging task. Researchers are continuously working in the field of restructuring of transmission system to improve the efficiency in terms of transmission pricing, load balancing and reliability of the system. This paper presents an overview of the recent trends in the field of the transmission pricing. The main focus of this paper is the analysis of various policies applied for deregulation and used to decide the transmission pricing.