Development of distribution networks pricing with distributed generation

Distribution network pricing is to allocate all or part of the existing cost of distribution system efficiently. Since the integration of distributed generation (DG) into distribution networks, DGs and dispatchable loads play an active role in the network operation and planning. In the United Kingdom, there are fourteen distribution companies representing each discrete region. Existing charging methods cannot deal with DG penetration, so the system charging methodology is currently under revaluation. In this paper network asset is mainly the turn over cost of the circuit, so for a given distribution network, the aim is to set up the network tariff to recover the cost of circuit asset. The proposed network pricing method tariff is based on two separate elements: a used circuit capacity element and an unused (headroom) circuit capacity element. Using the case studies, it shows that the method treat users (loads and DGs) and the network operator fairly.