Study on independent distribution pricing model and based on an integrating pricing method

The distribution pricing method is studied and the distribution network costs are analyzed, which is sorted into two types: fixed cost and variable cost. The integrative pricing method for distribution network is presented. It uses the embedded cost pricing method to allocate the fixed costs according to the maximum demands while uses the marginal cost pricing method to allocate the variable costs according to the spot prices. The distribution price model is built by the effective integration of the two methods, which is called the nodal price model based on integrative pricing method. It can be applied to spot price, time-of-use price, day-ahead market price and future contract electricity price.