A Power Quality Service Pricing Approach Considering Treatment Expenses and Stop Loss Insurance

In power markets, the power quality (PQ) problem is attached more and more importance to and the different customers need the power with different quality. So it is inclined for the utility to provide the power with multi-quality and to price power according to quality. In this paper, the characteristics are discussed, and a PQ service pricing approach considering quality cost and stop loss insurance is proposed. This method divides the PQ service fee into the cost of controlling PQ and stop loss premium, and makes the fee more clear and reasonable. Customer chooses the optimal PQ level according to the cost of controlling PQ and the loss cost of itself, and reduces the PQ risk by insurance. The less premium in fair premium can prompt the customer to take part in the insurance. Calculation result of an example shows that the method can achieve the supply of power with multi-quality and pricing according to quality, lower the PQ risk of customers, and eventually improve the PQ level of the entire power system.