IEEE Power & Energy Magazine - July/August 2015 - 84

Post-2007, the United Kingdom and Brazil
lead the way in introducing locational charges at the
EHV distribution level.
offers two band tariffs: one is normal tariff and the other
is economic, where companies offer cheaper rates for
energy usage at off-peak periods. Different companies
have slightly different time band for off-peak times.
In Brazil, for voltage levels from 138 to 13.8 kV, there are
a set of time-of-use tariffs, whereas for low voltages there
are only the flat tariffs. The tariffs are set by the regulatory agency for each distribution company according to their
time band for peak and off-peak.
In India, the UoS charges are usually set on an annual
basis. Some tariff structures for high-valued customers do
reflect a time-period based tariff, taking into account seasonal impact.
In Germany, charges are set annually. Apart from the
usual network tariffs, special rates can be negotiated;
however, they have to be offered as choices to all customers (nondiscrimination). Charges for load are differentiated by the typical annual utilization hours. Furthermore, charges make up a component related to peak load
of customers. Factoring in a coincidence factor serves to
distribute costs based on contribution of individual users
to system peak.

In Spain, UoS charges are calculated using an annual
basis. At present, LV customers can choose between a flat
tariff, a tariff with two time periods, and a tariff with
three time periods. MV customers can choose between a
three-time period tariff and a six-time period tariff, while
EHV customers have a tariff with sixtime periods.
In Chile, distribution charges are calculated every four
years, on an annual basis, depending on peak demand of
customers, as related to system peak demand. They correspond to capacity payments reflecting capacity use of
installations; energy charges are only related to system
losses. Customers may choose how their peak demand
is measured, and different tariffs exist depending on the
metering scheme used. System peak demand occurs within
certain hours of the day and in certain months of the year,
so that customers may adapt their consumption to reduce
their capacity payment.
In China, there is a set peak-valley and time-of-use price
as well as seasonal power price for nonresidential users. There
have been some pilot projects of peak-valley and time-of-use
price for residential users in some provinces, such as Shanghai
and Zhejiang, but most residential users have a flat tariff.

Is There Any Specific
Tariff for Distributed
Generation or
Microgeneration Such as
a Feed-in Tariff?

figure 5. A large penetration of photovoltaic generation in the urban parts of the
United Kingdom. (Source: Western Power Distribution, United Kingdom.)
84

ieee power & energy magazine

In the United Kingdom, for distributed generation larger than 5
MW, there is a renewable obligation certificate on the top of
energy sale. DGs have to pay for
the UoS and connection charges
themselves. For distributed or
microgeneration below 5 MW,
at present prices are negotiated
with the local supplier; most
will receive a floor price that is
delinked from the price variation in the energy market. Since
April 2010, small-scale generators receive a feed-in tariff
that provides greater certainty
on the return on investment in
the event that they make their
machines function.
july/august 2015

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