Dear friends, colleagues, and professors,
I am interested in become familiar with electrification process in different countries. As I read, in some countries, such as Sweden, householders have this option to buy energy from different retailers and the maintenance/reinforcement of distribution network is done by distribution system operators. In this regards, how is distribution network loss allocated among consumers and/or retailers?
Thank you for sharing your experience from different regions of the globe.
The situation in Australia is similar. The generators produce electricity - from coal. oil, gas, wind, solar etc., add their on-costs and sell it to the transmission company and make a profit. The transmission company distributes the electricity to various substations, adds its costs, sells it to a distribution company, and makes a profit. The distribution company distributes the electricity to end users, adds its cost and sells the distributed energy to retail 'resellers'. The resellers often have no idea at all what electricity is but charge the end users as much as they can for it, and make a profit. And people wonder why the electricity prices here are among the highest in the world . . .
The network operator, i.e. regional electricity companies.
Thank you Sahand. But, how is allocated? By which mechanism?
Quoted from
https://www.fortnightly.com/fortnightly/2014/06/iso-dso
"the DSO could possibly collect fees for the provision of various services such as bid matching services, facilitating retail markets, as well as aggregation services providing product to the wholesale markets, thus compensating for loss of retail revenues due to customer side generation or load curtailment."
Thank you Prof. El-Shimy for providing this very informative answer.
The situation in Australia is similar. The generators produce electricity - from coal. oil, gas, wind, solar etc., add their on-costs and sell it to the transmission company and make a profit. The transmission company distributes the electricity to various substations, adds its costs, sells it to a distribution company, and makes a profit. The distribution company distributes the electricity to end users, adds its cost and sells the distributed energy to retail 'resellers'. The resellers often have no idea at all what electricity is but charge the end users as much as they can for it, and make a profit. And people wonder why the electricity prices here are among the highest in the world . . .
Yep. Tony Maine has it nailed perfectly.
It is clear why there is enormous resistance self-generated, distributed solar pv systems from industry.
In India we measure the energy input to the Distribution company and see what we are able to collect from customer at the end of the month. We follow a uniform tariff dictated by the regulator. Hence no loss allocation. The loss named aggregated loss includes the technical loss and commercial loss. Commercial loss is theft and bills unserved or unpaid.
Electricity being an essential service the Govt often extends a helping hand to the Distribution company in the form of subsidies. 90% of the distribution companies have their heads below water.
The answer in one line is we do not allocate distribution losses, but in Transmission , we do, through wheeling charge calculations.
Distribution authority are responsible for loss compensation in distribution networks and for observing that loss company can measure out put on each substation and compare with real data of total consumer of this particular substation
Mohammad, seems to me your Q contains two parts:-
(a) who is responsible to retailers to make up the volume of kWh 'lost' between the customers meters and the import from the T:D boundary. To which other respondents have answered "the DNO" - hmm: implies very fact and accurate (real-time?) metering at both ends. Dream on.
(b) how are distribution losses allocated among retailers and their customers. To which I'd say that retailers should charge their customers on their metered kWh advance at a tariff rate that includes all the additional costs the retailer incurs, including distribution losses - anything implies 'adjusting' the meter read - bad idea. As to distribution loss allocation among retailers, the practical method is to apply a fixed DNO-computed loss factor (appropriate to the connection voltage level) to the aggregate of their customers' meter advances during each settlement period (actual reads if available (from LV customers?), or estimated from load profiles for monthly-read meters: not idea; and leads to endless ex-post adjustments as meter readings trickle in), so as to scale up each retailer's import from the T:D boundary. They are then charged (by the market or TSO) for that volume. Not perfect, but sort of works.
Actually in Indian Scenario, there is theft of electricity more than losses, secondly the distribution network is poorly maintained that adds to losses and thirdly improper metering at each nodes add to losses. Ultimately these losses are being paid by honest citizens in one form or the other. If this loop holes are plugged, the lossess will come down to less than half and only electrical/technical parameters losses will be there. Many distribution agencies are now replacing overhead lines to underground cables thus reducing these lossess. Involvement of ground staff of distribution companies further add to these theft/losses.
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