can u please answer the those 2 discussion pints

also please explain explain what the case study is overoll about

Q 3 v - Chapter 10 Relevant Costs, Pricing And Decisions Under Uncertainty (2) (1) (Protected View) . Word Jessa Thomas a E File Home insert Draw Design Layout References Mailings Review View Help 9 Tell me what you want to do 0 PROTECI'ED VIEW Be carefultiles from the Internet can contain viruses. Unless you need to edit it's safer to stay in Protected View. able E g X the chapter. E D From April 2005 the Ofce of Gas and Electricity Markets (Ofgem) in the UK has put in place its British Electricity Trading and Transmission Arrangements (BETTA). The following article was written during the consultation period leading up to the implementation of BETTA. It is an immutable physical fact of transmitting power by wire over long distances that costs rise and heat losses increase the further away you are trom your customers. With 56 per cent of existing UK generating capacity lying above a line between the Wash and the Severn, but 53 per cent of the demand sitting below that line, Ofgem wants a pricing regime that encourages new generating plant to be built closerto where the main demand is. But that ambition in itself a thoroughly green approach to shaping future investment intentions risks conict with the govemment's determination to dramatically accelerate the share of UK electricity generation accounted for by renewable sources like wind and wave power. The so-called locational pricing principle means generators furthest away from the main markets pay the biggest user charges, while those closest to the main centres of demand will, in some cases, attract a subsidy. So some of the generators paying the highest transmission charges will be the wind [arms in the north of Scotland. Otgem [the price regulator] points out that a whole series of other charges covering access to the transmission system, line losses and access to the interconnector are all being abolished when BE'ITA comes into effect. Ofgem insists the net effect of even the current, unapproved, NGC pricing proposals on Scottish generators will be broadly neutral. Source The Herald (Glasgw), 20 January 2005. p 24, Trme tor regime change it'ttrings an only get BETTA', Alf Young. Discussion points 1 What are the cost-based arguments to support charging a higher price for carrying electricity longer distances? 2 What are the noncost consequences of the decision to apply the 'locational pricing' principle? E 100% llll a? | + Page 1 of 26 1 1084 words /0 T h t h - . , 1 EM, 12:07AM ype ere osearc .-.. J 11,2,2019