table 2. A summary of cost drivers and allocation methods in the distribution pricing structure. United Kingdom Cost drivers Cost used Germany Spain Brazil Chile India Geographical location Yes-EHV No-HV/LV No No Yes-EHV No No Voltage level Yes No Yes Yes Yes No Density Yes-EHV No-HV/LV No No No Yes No Asset types (underground or overhead) Yes-EHV No-HV/LV No No No Yes No Tariff differentiation between differing DNOs Yes Yes No Yes Yes No Embedded cost HV/LV N/A No N/A No Yes Marginal cost N/A No No EHV- generator No N/A Incremental cost EHV, locational (LRIC, FCP- demand) New investment cost is socialized on case-by-case basis No HV/LV: ratio of future investment costs and load growth in present value Yes N/A EHV, (FCP- generation) Average cost based on historical expenditure HV/LV EHV/HV/LV No N/A Yes N/A Cost-causality principle No No Cost allocated to cost drivers, time periods and consumers according to cost causation No No No HV/LV- postage stamp Postage stamp Postage stamp EHV-ICRP (generator only) Postage stamp Principle of costof-supply, similar to postage stamp Cost allocation method EHV-LRIC -distance of traveling path EHV-FCP- average within each group Boundaries between connection and use charges Connection charge Yes-shallow Yes-shallow UoS charge Yes-all users Reinforcement Yes- charge reinforcement required one voltage level above connection 82 HV /LV- postage stamp ieee power & energy magazine Yes-shallow (consumer), deep (generator) Yes-shallow Yes- demand only if more than 100 m away Yes- shallow (demand), deep (DGs) Yes-consumer Yes-all only users Yes-all users Yes-all users Yes- consumer only Yes-load and N/A generator not from renewable energy or pit gas N/A Yes- generator N/A july/august 2015