Regulation of Electrical Distribution Companies via Efficiency Assessments and Reward-Penalty Scheme
Improving performance of electrical distribution companies, as the natural monopoly entities in electric industry, has always been one of the main concerns of the regulators. In this paper, a new incentive regulatory scheme is proposed to improve the performances of electrical distribution companies...
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| Format: | Article |
| Language: | English |
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University of Mohaghegh Ardabili
2017-06-01
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| Series: | Journal of Operation and Automation in Power Engineering |
| Subjects: | |
| Online Access: | http://joape.uma.ac.ir/article_546_ca7c3f1b12d4bec427562a776d98f51f.pdf |
| _version_ | 1811219204471259136 |
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| author | N. Mostaghim M. R. Haghifam M. Simab |
| author_facet | N. Mostaghim M. R. Haghifam M. Simab |
| author_sort | N. Mostaghim |
| collection | DOAJ |
| description | Improving performance of electrical distribution companies, as the natural monopoly entities in electric industry, has always been one of the main concerns of the regulators. In this paper, a new incentive regulatory scheme is proposed to improve the performances of electrical distribution companies. The proposed scheme utilizes several efficiency assessments and a 3-dimentional reward-penalty scheme (3DRPS). Through efficiency assessments, economic efficiency and service quality, as two aspects of companies’ performances, are assessed and according to the results of such assessments, reasonable capital expenditure (CAPEX) and operational expenditure (OPEX) for each company are calculated. Then, according to the reasonable CAPEX and OPEX, allowed revenues are calculated for next regulatory period. Moreover, the 3DRPS on quality is used to encourage the companies to maintain and improve their service quality during the regulatory period. The 3DRPS gives the incentive to the companies based on changes in their quality indices. The incentives are added to companies’ allowed revenues. Finally, the proposed scheme is applied to Iranian distribution companies and the results are discussed. |
| first_indexed | 2024-04-12T07:21:58Z |
| format | Article |
| id | doaj.art-a508fa178af249b0a27ad346ab359b7d |
| institution | Directory Open Access Journal |
| issn | 2322-4576 2423-4567 |
| language | English |
| last_indexed | 2024-04-12T07:21:58Z |
| publishDate | 2017-06-01 |
| publisher | University of Mohaghegh Ardabili |
| record_format | Article |
| series | Journal of Operation and Automation in Power Engineering |
| spelling | doaj.art-a508fa178af249b0a27ad346ab359b7d2022-12-22T03:42:17ZengUniversity of Mohaghegh ArdabiliJournal of Operation and Automation in Power Engineering2322-45762423-45672017-06-0151193010.22098/joape.2017.546546Regulation of Electrical Distribution Companies via Efficiency Assessments and Reward-Penalty SchemeN. Mostaghim0M. R. Haghifam1M. Simab2Tarbiat Modares UniversityTarbiat Modares UniversityMarvdasht Branch, Islamic Azad UniversityImproving performance of electrical distribution companies, as the natural monopoly entities in electric industry, has always been one of the main concerns of the regulators. In this paper, a new incentive regulatory scheme is proposed to improve the performances of electrical distribution companies. The proposed scheme utilizes several efficiency assessments and a 3-dimentional reward-penalty scheme (3DRPS). Through efficiency assessments, economic efficiency and service quality, as two aspects of companies’ performances, are assessed and according to the results of such assessments, reasonable capital expenditure (CAPEX) and operational expenditure (OPEX) for each company are calculated. Then, according to the reasonable CAPEX and OPEX, allowed revenues are calculated for next regulatory period. Moreover, the 3DRPS on quality is used to encourage the companies to maintain and improve their service quality during the regulatory period. The 3DRPS gives the incentive to the companies based on changes in their quality indices. The incentives are added to companies’ allowed revenues. Finally, the proposed scheme is applied to Iranian distribution companies and the results are discussed.http://joape.uma.ac.ir/article_546_ca7c3f1b12d4bec427562a776d98f51f.pdfEfficiency assessmentReward-penalty schemeDistribution company regulation |
| spellingShingle | N. Mostaghim M. R. Haghifam M. Simab Regulation of Electrical Distribution Companies via Efficiency Assessments and Reward-Penalty Scheme Journal of Operation and Automation in Power Engineering Efficiency assessment Reward-penalty scheme Distribution company regulation |
| title | Regulation of Electrical Distribution Companies via Efficiency Assessments and Reward-Penalty Scheme |
| title_full | Regulation of Electrical Distribution Companies via Efficiency Assessments and Reward-Penalty Scheme |
| title_fullStr | Regulation of Electrical Distribution Companies via Efficiency Assessments and Reward-Penalty Scheme |
| title_full_unstemmed | Regulation of Electrical Distribution Companies via Efficiency Assessments and Reward-Penalty Scheme |
| title_short | Regulation of Electrical Distribution Companies via Efficiency Assessments and Reward-Penalty Scheme |
| title_sort | regulation of electrical distribution companies via efficiency assessments and reward penalty scheme |
| topic | Efficiency assessment Reward-penalty scheme Distribution company regulation |
| url | http://joape.uma.ac.ir/article_546_ca7c3f1b12d4bec427562a776d98f51f.pdf |
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