Development of a Novel MW+MVAr-Miles Charging Methodology

This paper describes the principle and implementation of a new MM+ MVAr-Miles based charging methodology to allocate the existing distribution network’s annuity cost. The proposed charging methodology separates network facilities’ cost due to the respective real and reactive power flows. The costs are then allocated to network users according to their nature (demand or generation) and their power factors. The charging methodology is developed with an aim of reflecting the true cost and benefit of network customers, especially of embedded generators (DGs). The charging method is demonstrated on a subset of a practical distribution network, its effectiveness is shown through the comparison with MW-Mile and MVA-Mile charging methodologies. This paper results from work undertaken in a project on distribution charging methodologies for Western Power Distribution. The views in the paper expressed are not those of Western Power Distribution.