Distribution business charges for embedded generation

Distribution system tariffs have been developed for customers who take demand. The models used do not lend themselves easily to adaptation for generators, and so along with the fact that most generators have an individual impact on the system, it was proposed at the time of privatisation of the industry not to charge generators for use of the system. All charges would be made at the time of connection. As generators become more common, many are challenging this view and so we must consider if it is the most appropriate way to charge generators. Whilst we refer to embedded generation, this term describes the view from the transmission system, to a distribution business these generators are directly connected. The author gives the background to this situation and an overview of the charging methodology. The author also discusses current application of the charging conditions to generators, ancillary services, and losses and the distributor