New development in distribution network pricing for revenue recovery in the Great Britain

This paper presents the latest development in (Extra-high Voltage) EHV network pricing in the UK. It introduces the amendment made to Long-run Incremental Cost (LRIC) pricing and Forward Cost Pricing (FCP) as suggested to overcome their particular disadvantages appearing in practice. Particularly, this paper investigates three scaling approaches examined and considered by Distribution Network Operators (DNOs) for revenue reconciliation. A small system is utilized to demonstrate the calculation of the three approaches and the final unrecovered revenue.