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None of the following is a charge payable by an open access consumer except

  • A.the return on equity allowed to the licensee
  • B.the electricity duty of the neighbouring state
  • C.the licensee's approved depreciation for the year
  • D.the wheeling charge for use of the distribution system

Answer: D

Correct answer: the wheeling charge for use of the distribution system

An open access consumer buys energy elsewhere but still uses the local network, so it pays a wheeling charge for that use, together with a cross subsidy surcharge and any additional surcharge. The other three are components of the licensee’s own revenue requirement or a tax in another state, and none appears as a charge on this consumer.

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