Evaluation of Wheeling Charge in Context of Nepalese Power Market

Abstract

Today, the electric utility industry is undergoing significant changes as a result of restructuring in the power system. This restructuring primarily aims to introduce competition among various market participants. Consequently, it becomes imperative to devise an appropriate pricing strategy that ensures both reliability and secure operation of the power system. In instances where the power system operates within a deregulated environment, a transmission company emerges, tasked with the construction, ownership, and operation of the transmission system. Additionally, the Independent System Operator may take on the responsibilities of both the system operator and the transmission company. Upon transmitting power, fees are imposed on users utilizing the transmission lines. These fees enable the transmission company to recoup its capital and cover operational and maintenance costs. As a result, the transmission company levies a wheeling charge on those who utilize its transmission lines. Nonetheless, it's crucial to guarantee that the charges imposed on users for wheeling services are fair and accurately calculated.