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15th ELECTRICITY FORUM OF THE ENERGY COMMUNITY

Athens, 25-26 November, 2009

Energy Community Regulatory Board

Quality of electricity services

standards and incentives in quality regulation ECRB results and outlook

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215th ELECTRICITY FORUM OF THE ENERGY COMMUNITY, Athens, 25-26 November, 2009

Prepared by ECRB-CWG

Content

Introduction

The Basis of Service Quality Regulation

CEER Benchmarking Reports on Quality of ElectricitySupply

Analysis of National Reports

Conclusions and Next Steps

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References

1. Fumagalli, E., Lo Schiavo, L., Dalestre, F., ServiceQuality Regulation in Electricity Distribution andRetail, Springer-Verlag Berlin Heidelberg, 2007

2. CEER, 4th Benchmarking Report on Quality ofElectricity Supply, Bruxelles 2008

3. CIGRE C4.07/CIRED, Power Quality Indices andObjectives, 2004

4. National Reports on Quality of Electricity Services

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Introduction

The ECRB CWG TF2 Report on the Quality ofElectricity Service -Standards and Incentives in

Quality Regulation consists of three main parts:

1. Basis of service quality regulation

2. CEER benchmarking reports on quality of electricity

supply

3. Short analysis of national reports

Summaries of national reports are given in the appendixof the Report (Albania,Bosnia and Herzegovina,Croatia, Italy, Romania, Serbia, Ukraine, UNMIK)

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Structure of the national reports

National Legal Framework

National Regulatory Framework

General data on the Electricity Grid

Continuity of Supply

Voltage Quality Commercial Quality

Customer Support

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The basis of service quality regulation

Dialog in triangle: regulator-regulated company-customers

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Common features of successfuly implemented

regulation

Fairness and simplicity

Different approaches in different countries

Gradual implementation of regulatory instruments

Periodical revision of implemented regulatory instruments

Permanent dialog in triangle: regulator-regulatedcompany-customers

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Aspects of service quality

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Instruments in quality regulation (1/2)

Publication of data on company performance

Setting the minimum quality standard

Introduction of reward and penalty schemes

The promotion of premium quality contracts

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Instruments in quality regulation (2/2)

Quality indicators which describe actual performance ofthe regulated company

Performance standards which specify the level of qualitythat company is expected to uphold

Penalization of performance below the standard

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General framework of service quality regulation

Aspect ofserv ice quality

Collectinginformation and

making itavailable

Protecting th eworst-served

customers

Delivering anefficient level of

quality

Favouringmarket-like

mechanismsand competition

Commercialquality

Regulatoryinstruction for

recordingcustomerrequests

Guaranteedstandards onmaking and

keepingappointments

Reward andpenalty schemeson the quality of

call centres

Competition inproviding

connections

Continuity ofsupply

Regulatory

instruction forrecording

interruptions

Guaranteed

standards onduration of an

unplannedinterruption

Reward and

penalty schemeson the average

interruptionduration

Premium quality

contracts on thenumber ofunplanned

interruptions

Vol tage qual ity Measuringcampaigns Voltage qualitystandards

Premium quality

contracts onsupply voltagevariations

http://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20R08-CWG-08-05_%20Report%20Quality%20of%20Electricity%20Service%20in%20EnC%20.dochttp://../My%20Documents/HERA/!QualityOfSupply/CWG_Q_benchmark/2009.01.29%20-%20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The introduction of quality regulation

Data collection as a precondition for any regulatoryintervention

Interaction with the all interested parties throughconsultation process and customer surveys

Assessing whether regulatory instruments actually deliver

the desired results

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Suggestion for the regulators

Explore existing regulatory and legal frameworks: supplycontracts, licenses, secondary legislation, share of

responsibility between ministries and regulator

Consider experiences from other more developed sectorslike telecommunication regulation

Embrace international practice from ERGEG and CEERreports

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CEER benchmarking reports on quality

of electricity supply

The Council of European Energy Regulators (CEER)periodically carries out surveys and analyses the quality of

electricity supply in its member countries

CEER has included quality of supply as one of its mainactivities

The last report, issued in 2008, is freely available atwww.energy-regulators.eu

The 4th Benchmarking Report on Quality of Electricity

Supply addresses the three major aspects of electricityquality, namely continuity of supply, voltage quality and

commercial quality

http://www.energy-regulators.eu/http://www.energy-regulators.eu/

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Main Findings From National Reports (1/2)

In all countries quality of service is part of primary orsecondary legislation but in general only in Italy and

Romania regulator has clear and straightforward

competences regarding quality of service

Quality standards are set in Italy and Romania

In other countries, quality standards are underpreparation or partly are defined in other secondarylegislation

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Main Findings From National Reports (2/2)

In most countries methods of data collection are indevelopment

The most commonly used method of data collection isthrough DSOs

DSO and TSO have an obligation to inform the regulatoron an annual basis

In almost all of the investigated countries the nationalregulator is obliged to resolve disputes betweencustomers and operator(s)

The report could be found on: www.ecrb.eu

http://www.ecrb.eu/http://www.ecrb.eu/

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Conclusions

Development and approaches are very different The most developed countries are Italy and Romania

In other countries quality regulation and the introductionof quality standards is in its early stage

It is obvious that EnC countries need help and guidelinesin order to ensure the best (common) approach, thusavoiding possible mistakes in implementing qualityregulation

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Next Steps

EnC Study Assistance to regulators in introducing andapproving service quality regulation in the EnergyCommunity

The Consultant (EIHP-Zagreb), with the organizationalassistance of ECRB-S, will organize two workshops

The Consultant will assist NRAs in introducing and/or

improving a program aimed at monitoring electricitydistribution quality of service

ECRB-CWG-TF 2 will discuss the necessary follow-up

based on the results of the study Based on the consultants final report, ECRB-CWG-TF 2

will carry out activities that will support recommendationsof the study

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Thank You!

Lahorko Wagmann

Croatian Energy Regulatory Agency

Ulica grada Vukovara 14

10000 Zagreb

Croatia

lwagmann@hera.hr,

mailto:lwagmann@hera.hrmailto:lwagmann@hera.hr