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Power quality regulation under the new regulatory framework of distribution systems.

J. Rivier, J.I. de la Fuente, T. Gómez, J. Román

A new restructuring and regulatory process is taking place all over the world in the electrical sector. While competition is being introduced in generation and retailing, network distribution activity is still considered a natural monopoly that need to be regulated. New regulatory schemes of the type of performance-based regulation, such as price caps or revenue caps, have been proposed as an alternative to traditional cost of service or base rate regulation. These models provide strong incentives for cost reduction. As consequence, realiability, highly related to investment and maintenance practices in utilities, may suffer considerable deterioration. This paper proposes a specific power quality regulation to be implemented under performance-based distribution remuneration schemes, focused on continuity of supply. Theoretical and practical implementation issues are discussed based on the Spanish regulatory experience.


Keywords: Power quality, reliability, distribution systems, performance-based regulation, energy economics.

13th Power Systems Computation Conference (PSCC '99), Vol. 2, pp. 891-897, Trondheim, Norway, 28 Junio - 2 Julio 1999 1999.

Published: June 1999.


    Research topics:

IIT-99-063A

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