A New Method for Charging Transmission Services In Cross-border Trading

Since the deregulation of electric power systems the monopoly of electric market is gradually replaced by open access market. Several characteristics, which do not exist in a monopoly market, have began to surface after deregulation One of most obvious characteristic of open access market is that participations are not only trading electricity within their own network but also can exchange power among different electric networks. In other words, the demand could buy cheap electricity from distance suppliers located in different control area instead of paying higher price to local suppliers for electricity. As a result the suppliers have the incentive to offer the most sensible price in the market for competition with other suppliers. However the Transmission System Operators (TSO) have to face the problem of receiving transmission service charges in this situation as the many transactions are involved in cross border trading, which does not exist in traditional market. Nowadays new methodologies are introduced to address this problem meanwhile people are arguing their superiorities. In this paper a new method will be presented to resolve the cross-border trading problem which includes transmission payment allocation and congestion management in cross-border trading.