Long-run incremental cost pricing for distribution network - Different circuit growth rate

In order to achieve the purposes of network pricing ( i.e. to incentivise (1) the efficient utilisation of existing facilities and (2) cost-effective network expansion by influencing the siting and sizing of future users), the pricing methodology has to consider all possible events in the distribution network to be cost-reflective. One of the issues needing attention is the cases of different load/generation growth rate. These growth rates will in turn affect the growth rate at each circuit of the network. This paper proposes an improved long-run incremental cost (LRIC) pricing methodology with consideration of positive, negative and zero circuit growth rates. The general charges trends of an example circuit are illustrated.