autorità per l’energia elettrica e il gas fault statistics in distribution network: what...

Autorità per l’energia elettrica e il gas

FAULT STATISTICS IN DISTRIBUTION NETWORK:

WHAT REGULATORS NEED?

Roberto MalamanAutorità per l’energia elettrica e il gas - Italy

and Council of European Energy Regulators – WG on Quality of Supply

This presentation is not an official AEEG or CEER document


INTRODUCTION

CUSTOMER WELFARE IS AFFECTED BY BOTH PRICE AND NON-PRICE ISSUES

REGULATORS ARE IN CHARGE OF INSURING THAT APPROPRIATE QUALITY IS DELIVERED TO CUSTOMERS


MAIN QUALITY FACTORSElectricity Service

•VOLTAGE LIMITS•VOLTAGE DIPS•HARMONICS•FLICKER

CUSTOMER SERVICE ISSUES

SU

PP

LY

DIS

TR

IBU

TIO

N

COMMERCIAL QUALITY

CONTINUITYOF SUPPLY

OTHER PARAMETERS OF POWER QUALITY

•SECURITY DEPOSITS•TOOLS FOR PAYING BILLS

•NON PAYMENT HANDLING

•DISCONNECTIONS FOR DEBT

•COMPLAINTS•READING•BILLING•NEW SUPPLY

ESTIMATES•CONNECTIONS TO NETWORK

•PROVING SUPPLY•RICONNECTIONS AFTER NON-PAYMENT DISCONNECTIONS

•APPOINTMENTS•VOLTAGE AND METERS INVESTIGATIONS

•LONG, SHORT AND TRANSIENT NON PLANNED SUPPLY INTERRUPTIONS

•PLANNED SUPPLY INTERRUPTIONS

ELECTRICITYSERVICE


PRICE REGULATION AND QUALITY REGULATION PRICE REGULATION INVOLVES INCENTIVES FOR

QUALITY OF SUPPLY PRICE REGULATION WITHOUT QUALITY REGULATION

MAY GIVE UNINTENDED AND MISLEADING INCENTIVES TO QUALITY LEVELS

RATE OF RETURN REGULATION INCENTIVE TO OVER-INVESTMENT

(AVERCH-JOHNSON OVER-CAPITALISATION EFFECT, OR INCENTIVE TO “GOLD-PLATED” SERVICES)

PRICE CAP REGULATION QUALITY EXPENDITURE REDUCTION CAN BE

USED TO CUT COSTS AND INCREASE PROFITS UTILITY REGULATION SHOULD EXPLICITLY INCLUDE

QUALITY TARGETS, EXPECIALLY AFTER UTILITIES PRIVATIZATION


Customer satisfaction is strongly affected by quality levels (Italian regional figures)

R2 = 0,7213

0

5

10

15

20

25

30

0 60 120 180 240 300 360 420MINUTES LOST PER USER

UN

SA

TIS

FIE

D U

SE

RS

(%

)

LOMB

V.AO F-VG

VENEM-R

PIEM

T-AA

LIG

TOSCMAR

CAMPBAS ABR

LAZ

UMB

PUG

CAL

SIC

MOLSARD


SOME PRINCIPLES FOR QUALITY REGULATION

QUALITY REGULATION CAN BE FOCUSED ON INPUTS (ENGINEERING SOLUTIONS) EXPENDITURE (INVESTMENT AND OTHER COSTS) OUTPUTS (THE CONSEQUENCE ON THE CUSTOMERS)

REGULATION FOCUS IS SHIFTING TOWARD OUTPUTS

REGULATORS SHOULD AVOID TO FORCE TECHNICAL SOLUTIONS OR DECIDE INVESTMENT PLANS

FOCUS ON INPUTS IS WELCOME IF OUTPUTS ARE NOT EASILY MEASURABLE/CONTROLLABLE


INSTRUMENTS FOR QUALITY REGULATION

GUARANTEED STANDARDS(TO GUARANTEE A MINIMUM QUALITY THRESHOLD TO EACH SINGLE CUSTOMER)

COMPENSATION PAYMENTS(IF GUARANTEED STANDARDS ARE NOT MEET)

OVERALL STANDARDS(TO GUARANTEE A MINIMUM QUALITY THRESHOLD TO THE AVERAGE OF CUSTOMERS)

LEAGUE TABLES (BENCHMARKS) PUBLICATION OF QUALITY PERFORMANCE (ACTUAL LEVELS) OR YARDSTICK COMPETITION

INCENTIVE/PENALTIES MECHANISMS (SANCTIONS)

QUALITY-REVENUE OR QUALITY-TARIFF LINKS


REGULATORS APPROACH

FROM COMPANIES’ DECISIONS TO REGULATION

MIX OF ECONOMIC AND TECHNICAL REGULATION

FOCUS ON COMMERCIAL QUALITY AND CONTINUITY OF SUPPLY, PROVIDING THAT SECURITY OF SUPPLY IS GUARANTEED

FOCUS FOR CONTINUITY ON DISTRIBUTION


CONTINUITY OF SUPPLY REGULATION AIMS

GUARANTEE RELIABILITYENHANCE SYSTEM QUALITYPROMOTE ADEQUATE INVESTMENT AND MAINTENANCE

INSTRUMENTSSYSTEM RULES/RESPONSIBILITIES INDIVIDUAL STANDARDS (GUARANTEE)OVERALL STANDARDS (GUARANTEE OR

ENHANCEMENT) PERSPECTIVES

QUALITY DEPENDENT PRICE CAP OR REVENUE CAP SYSTEMS


CONTINUITY OF SUPPLY REGULATION:SOME EUROPEAN EXPERIENCES

ITALY (2000)ECONOMIC INCENTIVES AND PENALTIES FOR

CONTINUITY OF SUPPLY (Q-ADJUSTED DISTRIBUTION TARIFF)

NORWAY (2001)COMPENSATION FOR ENERGY NON SUPPLIED

UNITED KINGDOM (2002)INFORMATION AND INCENTIVES PROJECT

HUNGARY (2003)Q-ADJUSTED DISTRIBUTION TARIFF


CONTINUITY OF SUPPLY REGULATION:U.S. EXPERIENCES(Survey sample: 42 States – Source: Ohio University 2002)

REPORTING AND MONITORING

PERFORMANCE STANDARDS

PENALTIES/REWARDS

Yes: 31

Yes: 17

Yes: 6

Working on it: 1

Working on it: 5

No: 10

No: 20

No: 36


CONTINUITY OF SUPPLY:REGULATION MAIN STEPS

1. MEASUREMENT RULES: INTERRUPTIONS HAVE TO BE MEASURED IN THE SAME WAY ALL OVER THE COUNTRY

2. CLASSIFICATION

ORIGIN

CAUSES OF INTERRUPTIONS (RESPONSIBILITIES):

•ACTS OF GOD (“FORCE MAJEURE”)

•USERS’ OR THIRD PARTIES’ RESPONSIBILITIES GEOGRAPHIC CLASSIFICATION/NETWORK STRUCTURE

3. REPORTING 4. AUDIT PROCEDURES 5. PERFORMANCE STANDARDS 6. ECONOMIC INCENTIVES/PENALTIES


REGULATORS NEEDS REGULATORS NEED RELIABLE AND

COMPARABLE STATISTICS ON FAULTS FOR:COMPARING COMPANIES, REGIONS, AND COUNTRIESSETTING STANDARDSMONITORING IMPROVEMENTSLINKING REVENUES TO QUALITY TARGETS

THESE STATISTICS SHOULD:ALLOW OMOGENEOUS COMPARISONALLOW THE USE OF FEW RELEVANT INDICATORS (NUMBER/DURATION)ALLOW FAULTS RESPONSIBILITIES SEPARATIONBE SO RELIABLE TO BE USED TO MODIFY CUSTOMERS’ BILLS (TARIFF) AND COMPANIES’ REVENUES


CONTINUITY OF SUPPLY: BENCHMARKING OF ACTUAL LEVELS

WIDE VARIABILITY OF DEFINITIONS AND REPORTING PRACTICES

CRITICAL ISSUES FOR COMPARISON ONLY UNPLANNED VS PLANNED+UNPLANNED INTERRUPTIONS INDICATORS WEIGHTED ON AFFECTED CUSTOMERS VS

INDICATORS WEIGHTED ON AFFECTED POWER DEFINITIONS OF ACTS OF GOD (FORCE MAJEURE) DEFINITION OF “LONG INTERRUPTION”: 3 MINUTES VS 1

MINUTE VOLTAGE LEVELS (ALL INTERRUPTIONS VS ONLY ABOVE 1kV) GEOGRAPHICAL CLASSIFICATION RECORDING PRACTICES

AN INITIAL CRUDE COMPARISON HAS BEEN ATTEMPTED


CONTINUITY OF SUPPLY: BENCHMARKING OF ACTUAL LEVELS

0 100 200 300 400

ITALY (1)

UK

NORWAY (2)

NETHERLANDS

FRANCE (3)

SWEDEN

SPAIN (4)

PORTUGAL (5)

CUSTOMER MINUTESLOST, 1999 (UnplannedLong interruptions)

NOTES (for detail of comparison see full report)(1) Only Enel (93% of Italy)(2) Only interruptions above 1 kV(3) Excluded exceptional storms (455 min. lost storms included)(4) Only interruptions above 1 kV; TIEPI (hours lost; indicator weighted on affected power)(5) Only interruptions above 1 kV, planned and unplanned; TIEPI (see above)


CONTINUITY OF SUPPLY IN ITALY: North-South Differences before regulation

YEAR-CUMULATIVE DURATION OF INTERRUPTION (MINUTES LOST PER LV USER; Enel)

0

200

400

600

800

1000

1200

Central and Southern ItalyNorthern Italy


MEASURES OF SERVICE QUALITY (INCLUDED IN THE INCENTIVE SCHEME)

DURATION AND NUMBER OF LONG INTERRUPTIONS (PLANNED AND/OR NOT PLANNED)

ENERGY NOT SUPPLIED (ENS)

UK, VICTORIA, MA, NY, ITALY

NORWAY, ARGENTINA

DISTRIBUTION LOSSES UK, VICTORIA, MA, NYPOWER QUALITY VICTORIA, ARGENTINALABOR SAFETY MACUSTOMER SATISFACTION UK, MAMAJOR OUTAGE EVENTS NY


MEASURES OF SERVICE QUALITY

SYSTEM INDEXES UK, VICTORIA, MA, NY, ITALY PER DISTRIBUTOR UK PER CIRCUIT TYPE VICTORIA, MA, NY, ITALY

INDIVIDUAL INDEXES NORWAY, ARGENTINAUK, VICTORIA, MA

(GUARANTEED STANDARDS)


CONTINUITY OF SUPPLY MEASUREMENT IN ITALY1/ Supply Interruptions Measurements THE AUTHORITY DEFINED A METHODOLOGY

FOR MEASURING INTERRUPTIONS IN A COMMON WAY

ZONAL MEASUREMENTS FOR LV USERS AND FOR SHORT AND TRANSIENT INTERRUPTIONS IN THE MV NETWORK; AT THIS PURPOSE, TELECONTROL SYSTEM IS REQUIRED AT THE EXIT OF HIGH/MEDIUM VOLTAGE TRANSFORMER

INDIVIDUAL MEASUREMENTS FOR NON PLANNED LONG (>3’) INTERRUPTIONS FOR MV USERS


CONTINUITY OF SUPPLY MEASUREMENT IN ITALY2/ Supply Interruptions Classifications CAUSES OF INTERRUPTIONS HAVE BEEN CLASSIFIED AS

FOLLOWS: ACTS OF GOD (“FORCE MAJEURE”): CIRCUMSTAMCES OF

EMERGENCY OR DISASTER TESTIFIED BY LOCAL OR NATIONAL AUTHORITHIES, OR WEATHER CONDITIONS BEYOND DESIGN REQUIREMENTS FOR NETWORKS

USERS’ OR THIRD PARTIES’ RESPONSIBILITIES DISTRIBUTORS’ RESPONSIBILITIES

INTERRUPTIONS HAVE BEEN ALSO CLASSIFIED BY ORIGIN IN ORDER TO TAKE INTO ACCOUNT DIFFERENT DISTRIBUTION NETWORK LAYOUTS INTERRUPTIONS ORIGINATED IN THE TRANSMISSION GRID,

DISTRIBUTION HV GRID, DISTRIBUTION MV GRID, DISTRIBUTION LV GRID


CONTINUITY OF SUPPLY MEASUREMENT IN ITALY3/ Territorial classifications IN ORDER TO TAKE INTO ACCOUNT DIFFERENCES

BETWEEN URBAN AREAS AND RURAL AREAS, ITALY HAS BEEN CLASSIFIED IN THREE DENSITY LEVELS: HIGH DENSITY (URBAN) AREAS: MUNICIPALITIES WITH

MORE THAN 50,000 INHABITANTS MEDIUM DENSITY (SUBURBAN) AREAS: MUNICIPALITIES

WITH MORE THAN 5,000 AND LESS THAN 50,000 INHABITANTS

LOW DENSITY (RURAL) AREAS: MUNICIPALITIES WITH LESS THAN 5,000 INHABITANTS

SPECIAL ATTENTION HAS BEEN DEVOTED TO SEPARATE LOW AND MEDIUM DENSITY AREAS (SUBURBS) FROM THE HIGH DENSITY AREAS (DOWNTOWNS) WITHIN THE LARGEST CITIES (EX: CITY OF ROME)


THE EFFECTS OF REGULATION IN ITALY: CUSTOMER MINUTES LOST 1998-2001

TOTAL

UNDER REGULATION

171

225 228

209

118

175188

0

50

100

150

200

250

1998 1999 2000 2001

MIN

UTI

PER

SI P

ER C

LIEN

TE A

LL'A

NN

O


THE EFFECTS OF REGULATION IN ITALY: CUSTOMER MINUTES LOST 1998-2001

DURATA CUMULATA TOTALE (D1+D2)

115

136131

103

224

214

126

188

376

356

328

291

171

209225

228

0

50

100

150

200

250

300

350

400

1998 1999 2000 2001

MIN

UTI

NORD

CENTRO

SUD

ITALIA


AVERAGE NUMBER OF INTERRUPTIONS FOR CUSTOMER (Italy 1998-2001)

NUMERO MEDIO INTERRUZIONE (D1+D2)

2,5 2,62,5

2,2

5,04,6

3,2

3,9

6,8

6,0

5,65,3

3,5

3,84,44,2

0

1

2

3

4

5

6

7

1998 1999 2000 2001

MIN

UTI

NORD

CENTRO

SUD

ITALIA


CONCIL OF EUROPEAN ENERGY REGULATORS (CEER)WORKING GROUP ON QUALITY OF SUPPLY: OBJECTIVES

COMPARE STRATEGIES FOR DESIGNING AND IMPLEMENTING QUALITY OF SUPPLY REGULATION

IDENTIFICATION AND SELECTION OF COMPARABLE INDICATORS/STANDARDS

BENCHMARKING STUDY ON QUALITY OF SUPPLY

POSSIBLE RECOMMENDATIONS FOR QUALITY OF SERVICE BENCHMARKING

2001 REPORT ON WWW.CEER-EU.ORG


CEER WORKING GROUP ON QUALITY OF SUPPLY: 2002-2003 ACTIVITIES

COMPARE STRATEGIES FOR DESIGNING AND IMPLEMENTING QUALITY OF SUPPLY REGULATION

IMPROVE STATISTICS COMPARABILITY (FOR REGULATORY PURPOSES)

BENCHMARKING STUDY ON QUALITY OF SUPPLY (BOTH LEVELS AND STANDARDS)

ENLARGING THE SCOPE OF COMPARISON TO PUBLIC SERVICE OBLIGATIONS

ADDRESS SPECIAL TOPICS AS FAULTS RESPONSIBILITY AND DATA AUDITS


CONCLUSION: LESSONS LEARNEDTRANSITION TOWARDS LIBERALISED RETAIL MARKET

MAY RAISE NEW QUALITY REGULATORY CHALLENGES

CUSTOMERS’ DEMAND FOR BETTER QUALITY COULD BE A STRONG INCENTIVE TO LONG-TERM IMPROVEMENT

REGULATION OF ELECTRICITY SUPPLY QUALITY SHOULD BE AN INTEGRAL PART OF THE PRICE SETTING PROCESS

ECONOMIC AND TECHNICAL REGULATION ARE MERGING

LACK OF AGREED UPON (INTERNATIONAL & EUROPEAN) QUALITY STANDARDS MEASUREMENT PRACTICE AS WELL AS POOR PERFORMANCE BENCHMARKS MAY SLACKEN REGULATORY SIMPLICITY, EFFECTIVENESS AND PROGRESS TOWARDS SINGLE ELECTRICITY MARKET

autorità per l’energia elettrica e il gas fault statistics in distribution network: what...

Documents