T o t a l e e -W/M h) × P w (M W) “Displaystyle Totalwhelingfee -Wc”),”Pw (MW)” Under deregulation, many vertically integrated distribution companies have been split between production owners, transportation and distribution owners and retailers. In order to obtain capital costs, operating costs and a return on investment, a transfer requirement (TRR) is established for each transfer owner and approved by a national authority (for example. B the Federal Energy Regulatory Commission in the United States). RRR is paid through transmission access charges (TACs), weighted charges for internal charges and energy exports for the use of transportation facilities. The energy export tax is often referred to as a wheel tax. By the way, the transmission access tax applies only to the amount exported. Some of these on-board generators may be sold to the individual buyer through approved power purchase contracts, while others may want to invest energy to third parties. Generators that want to drive energy face a number of challenges related to the use of system royalties. See Wheeling 30 March.pdf which exposes the context of cycling within South Africa`s borders. The cycling levy is called the bicycle tax. This is an MWh amount recovered by the owner of the transmission for the use of his system. If the antivity of the resources has to go through several [transfer owners]s, it is possible to charge a bicycle fee for each person.
The reasons for a wheel load are multiple. It can be easy to recover some transmission or bottling costs. However, another motivation would be to keep prices low. For example, if electricity prices in Arizona are $30/MWh and prices in California are $50/MWh, resources in Arizona would be sold in the California market to earn more money. Arizona utilities would then be required to pay $50/MWh if they needed these resources. If Arizona calculated a $10/MWh bicycle fee, Arizona would only have to pay $40/MWh to compete with California. However, Arizona would not want to ask for too much, as this could hurt the benefits of trading in electricity between systems. In this way, it works in the same way as [Tariff]s. Although `wc` wheel load per unit.
“Pw” is MW power. Click here for the information brochure on the process and prices of crossing the Eskom networks due to bilateral trade.