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Challenges facing the European power transmission tariffs: The case of inter-TSO compensation

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  • Stoilov, Dimo
  • Dimitrov, Yulian
  • François, Bruno

Abstract

This article draws attention to problems important for all EU power consumers--the unfairness in individual payments for power transmission and in the cross-border subsidy element in the mechanism of Inter-Transmission System Operators (TSO) Compensation (ITC). A brief review of power transmission tariffs brings out the structure of the problems. A short retrospection explains their growth. The essence of the ITC mechanism is explained and existing shortcomings are illustrated. The deficiencies of existing regulations for transmission pricing are analyzed. In the light of this analysis, the ITC problem is reconsidered and defined more precisely. The basic prerequisites to an ITC reformulation process are presented. The main principles of a new simple, transparent and equitable approach are suggested, in accordance with the contemporary legal positions and functions of the TSOs.

Suggested Citation

  • Stoilov, Dimo & Dimitrov, Yulian & François, Bruno, 2011. "Challenges facing the European power transmission tariffs: The case of inter-TSO compensation," Energy Policy, Elsevier, vol. 39(9), pages 5203-5210, September.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:9:p:5203-5210
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    References listed on IDEAS

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    1. Olmos Camacho, Luis & Perez-Arriaga, Ignacio J., 2007. "Comparison of several inter-TSO compensation methods in the context of the internal electricity market of the European Union," Energy Policy, Elsevier, vol. 35(4), pages 2379-2389, April.
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    Cited by:

    1. He, Y.X. & Jiao, J. & Chen, R.J. & Shu, H., 2018. "The optimization of Chinese power grid investment based on transmission and distribution tariff policy: A system dynamics approach," Energy Policy, Elsevier, vol. 113(C), pages 112-122.
    2. Ahmed, Tofael & Mekhilef, Saad & Shah, Rakibuzzaman & Mithulananthan, N. & Seyedmahmoudian, Mehdi & Horan, Ben, 2017. "ASEAN power grid: A secure transmission infrastructure for clean and sustainable energy for South-East Asia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1420-1435.
    3. Wang, Yongli & Zhang, Fuli & Zhang, Yuanyuan & Wang, Xiaohai & Fan, Lisha & Song, Fuhao & Ma, Yuze & Wang, Shuo, 2019. "Chinese power-grid financial capacity based on transmission and distribution tariff policy: A system dynamics approach," Utilities Policy, Elsevier, vol. 60(C), pages 1-1.
    4. Stoilov, Dimo & Stoilov, Luben, 2013. "Improving inter-transmission compensation in EU," Energy Policy, Elsevier, vol. 62(C), pages 282-291.

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