Cost of Wheeling and Wheeling Cost Methodologies in Deregulated Electricity Industry

Power industry is moving rapidly from regulated monopolistic conventional setup to a deregulated free environment.  Wheeling and its cost setup including the methodology by which it is computed are high priority problems throughout the power industry.  It will be very useful especially for the developing countries moving towards the unbundling of electricity supply industry.  This paper presents the exposition of wheeling of power, its necessity, and a detailed presentation of exposition of data requirements and description of some wheeling cost methodologies to allocate wheeling cost in case of multiple wheels. In case study, an application example is illustrated. Computational results obtained by applying a software package developed in C language to calculate the wheeling cost by all embedded wheeling cost methods are tabulated.