Trade-off between UoS charge and investment cost for new distribution network users

This letter investigates the situation that high use-of-system charge (UoSC) might appear for new network users and studies the potential of network investment to avoid the high charge. It proposes a method to strike the trade-off between UoSC and investment cost, in the form of connection charge (CC). It determines the utilization level where UoSC and CC reach equilibrium. Beyond this level, it is more economical to conduct network investment for new users to avoid high UoSC. The trade-off between the two type charges provides effective signals for new network users to manage their connecting size and location. The concept is illustrated on a two-busbar system.