Attempts to Introduce Locational Marginal Loss Charging in the UK

摘要

This paper reviews and analyses the attempts to introduce locational loss charging in the UK. The fundamentals and problems with the marginal loss charging are reviewed and the reasons for the opposition to the introduction of changes are analysed. The analysis appears to suggest that the short-run net benefits of the changes, in the form of loss reduction due to improved despatch, would be largely offset by the increased costs. Although probably the long-term effect on investments and divestments would be more tangible, those benefits appear to be difficult to quantify. Additionally, locational loss charges would lead to transfers of money between different generators and groups of consumers which are likely to be of a greater magnitude than any efficiency gain.