Kimmo Lummi

Cost-causation based approach in forming power-based distribution network tariff for small customers

This paper discusses the development of electricity distribution network tariffs. In the paper, the present state of distribution network tariffs of small customers is discussed together with key future challenges of the distribution network business. As a potential solution to these challenges, power-based tariffs of the small customers are discussed and preliminary results of a case study are presented where tariffs are formed by applying data of one Finnish Distribution System Operator (DSO).

Network impacts of distribution power tariff schemes with active customers

In this paper we study the network impacts of power based distribution tariff which has been widely discussed in Finland as a future electricity distribution tariff also for small customers. The abundance of smart meters in Finland has enabled new forms of electricity pricing schemes, most notably hourly based energy pricing utilized by many Finnish retailers presently. However, the distribution pricing schemes are currently virtually same as during pre-deregulation and before the automatic meter reading (AMR) infrastructure. The paper presents the network impacts (voltage and current violations) of proposed tariff scheme based on load flow simulation of large-scale real-life distribution network from Finland. Simulations include the impact of both the retail and the distribution tariffs. Customers having large enough energy consumption (electric heating customers) are simulated to have a home automation for energy management. The results show that customer energy optimization can cause significant investment needs to the network and that power based distribution tariff can mitigate these issues.

Development options for distribution tariff structures in Finland

In this paper, we study the development options of tariff structures in electricity distribution in Finland. We compare the impacts of three different tariffs from the viewpoints of customers, distribution system operator (DSO), electricity supplier, and society. Analyzed tariffs are (1) energy oriented tariff, which is currently in use, (2) power limit tariff, and (3) power tariff. Based on the analyses, it seems that it is justified to include power based price component in distribution tariff. Generally, the impacts of both analyzed power based tariffs are quite similar. However, it seems that power tariff is a bit stronger candidate. Nevertheless, it should be noted that the benefits of the power-oriented pricing, illustrated in the paper, could be achieved only by well-designed tariff system. Although analyses are based on Finnish case, most of the results are generalizable to other countries also.

Aspects of advancement of distribution tariffs for small consumers in Finland

This paper discusses the development of distribution tariffs of small consumers in Finland. Changes in the electricity sector have created pressures for the Distribution System Operators (DSO) to develop their pricing practices in order to better reflect their cost structures. In this context, power-based distribution tariffs (PBDT) have been seen as a potential direction for development. This paper analyses the EU and Finnish legal framework for distribution tariffs with an aim to identify potential regulatory barriers and incentives for developing PBDTs in Finland. To support this analysis, the paper also provides results of a survey conducted in Finland in 2016 in the EL-TRAN project, reflecting the will of Finnish consumers to improve their ability to affect the distribution fees. The results indicate that the consumers are interested in having this opportunity.