Electricity Markets: Transmission Prices Methods

  • Judite FerreiraEmail author
  • Zita Vale
  • Hugo Morais
Part of the Intelligent Systems, Control and Automation: Science and Engineering book series (ISCA, volume 46)


In the context of electricity markets, transmission pricing is an important tool to achieve an efficient operation of the electricity system. The electricity market is influenced by several factors; however the transmission network management is one of the most important aspects, because the network is a natural monopoly. The transmission tariffs can help to regulate the market, for this reason transmission tariffs must follow strict criteria. This paper presents the following methods to tariff the use of transmission networks by electricity market players: Post-Stamp Method; MW-Mile Method Distribution Factors Methods; Tracing Methodology; Bialek’s Tracing Method and Locational Marginal Price. A nine bus transmission network is used to illustrate the application of the tariff methods.


Power Flow Electricity Market Transmission Network Transmission Price Locational Marginal Prex 
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Copyright information

© Springer Science+Business Media B.V. 2011

Authors and Affiliations

  1. 1.GECAD – Knowledge Engineering and Decision-Support Research Group of the Institute of Engineering – School of EngineeringPolytechnic of Porto (ISEP/IPP)PortoPortugal

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