Designing an electricity distribution reward-penalty scheme based on spatial reliability statistics

Aleksandar Janjic, Lazar Z. Velimirovic and Petar Vranic

Utilities Policy, 2021, vol. 70, issue C

Abstract: The Reward-Penalty Scheme (RPS), a financial strategy developed by the regulator to avoid service reliability deterioration, is often used to guarantee the reliability level. This paper provides the new methodology for RPS design based on the spatial distribution of reliability performances. The analytical form of the spatial performance distribution is obtained using a method of moments. Using this distribution, the Dead Band Zone and reward and penalty points for each utility are obtained. This analysis offers a more transparent set of reward and penalty thresholds. The proposed methodology is tested on actual data from a Serbian distribution utility.

Keywords: Quality of service; Electricity supply industry deregulation; Power system reliability. method of moments (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S095717872100045X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:70:y:2021:i:c:s095717872100045x

DOI: 10.1016/j.jup.2021.101211

Access Statistics for this article

Utilities Policy is currently edited by Beecher, Janice

More articles in Utilities Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().