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A wheeling charge is levied for

  • A.use of the distribution network to convey energy
  • B.the energy lost in the distribution network
  • C.the standby supply held ready by the licensee
  • D.the metering and billing of an open access consumer

Answer: A

Correct answer: use of the distribution network to convey energy

A wheeling charge is paid for the use of the wires by a consumer buying energy from a supplier other than the local licensee. It compensates the licensee for the network it is providing but not the energy, and it is the mechanism that makes open access possible without the network owner losing its cost recovery.

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