BENCHMARKING METHODS FOR ANALYZING THE EFFICIENCY OF THE ELECTRICITY DISTRIBUTION SYSTEM OPERATORS

Authors

  • Anatolii Ihorovych Zamulko Національний технічний університет України «Київський політехнічний інститут імені Ігоря Сікорського», Ukraine https://orcid.org/0000-0001-8018-6332
  • Yuliia Valentynivna Chernetska Національний технічний університет України «Київський політехнічний інститут імені Ігоря Сікорського», Ukraine https://orcid.org/0000-0001-6821-3211

DOI:

https://doi.org/10.20535/1813-5420.3.2018.164264

Keywords:

electrical energy, distribution system, distribution system operator, incentive regulation, benchmarking, DEA, SFA, StoNED, reference network, Smart Grid

Abstract

The paper deals with the experience of European countries with liberalized electricity markets in the tariff regulation for electricity distribution services and in applying the benchmarking methods for analysis of the efficiency of distribution system operators (DSO). Selection of the countries was done on the base of the size of an operational area and market concentration that is a number of separated DSOs. Particular attention was given to regulation incentives for DSOs concerning their investments into technologies that are necessary for building the intelligent power systems (Smart Grids). Methods of determining the individual efficiency requirements for DSOs were considered in details: econometric methods (DEA, SFA, StoNED) and reference network methods; advantages and use patterns of each method were noticed. On the basis of the investigations, some suggestions were made for the regulator of the electricity market in Ukraine about opportunities to apply the benchmarking methods for analyzing the efficiency of DSOs.

References

Енергетична стратегія України до 2035 року: безпека, енергоефективність, конкурентоспроможність, схвалена розпорядженням Кабінету Міністрів України від 18.08.2017 р. No 605-р. URL: https://www.kmu.gov.ua/ua/npas/250250456.

Electricity distribution investments: what regulatory framework do we need? EURELECTRIC report. Brussels, 2014. 43 p.

Study on tariff design for distribution systems: final report prepared for European Commission, Directorate-General for Energy, Directorate B – Internal Energy Market. 2015. 652 p. URL: https://ec.europa.eu/energy/sites/ener/files/documents/20150313%20Tariff%20report%20fina_revREF-E.PDF.

Power distribution in Europe. Facts & Figures / Eurelectric report. Brussels, 2013. URL: https://www3.eurelectric.org/media/113155/dso_report-web_final-2013-030-0764-01-e.pdf.

Jamasb T., Pollitt M. Incentive regulation of electricity distribution networks: lessons of experience from Britain. Cambridge: Electricity Policy Research Group, University of Cambridge, 2007. 57 p. URL: https://www.eprg.group.cam.ac.uk/wp-content/uploads/2014/01/eprg0701.pdf.

Joskow P. Incentive regulation in theory and practice: electric transmission and distribution networks. Chapter 5 in Economic regulation and its reform. What have we learned? [Edited by Nancy Rose] // National Bureau of Economic Research conference report. 2014. P. 291-345.

Jamasb T., Pollitt M. Benchmarking and regulation: international electricity experience // Utilities Policy. 2001 No 9. P. 107-130.

Cossent R. A. Economic regulation of distribution system operators and its adaptation to the penetration of distributed energy resources and smart grid technologies : Doct. Dissert. Madrid, 2013. 265 p.

Bauknecht D., Leprich U., Spath Ph., Skytte K., Estnault B. Regulating Innovation & Innovating Regulation: DG-GRID research project. 2007. 58p. URL: https://www.researchgate.net/publication/215616226_Regulating_Innovation_Innovating_Regulation.

Jamasb T. Benchmarking electricity distribution networks // ACCC/AER Annual Conference. 7-8 Auguest 2015. Brisbane. 24 p. URL: https://www.accc.gov.au/system/files/Breakout%201%20A%20-%20Tooraj%20Jamasb%20-%20ACCC%20%26%20AER%20Regulatory%20Conference%202015.pdf.

Haney A., Pollitt M. Efficiency analysis of energy networks: an international survey of regulators // Energ Policy. 2009. Vol. 37. Issue 12. P. 5814-5830

Migueis V. L., Сamanho A. S., Bjorndal E. , Bjorndal M. Productivity change and innovation in Norwegian electricity distribution companies // Journal of the Operational Research Society. 2012. Vol. 63. P.982-990.

Kuosmanen T., Saastamoinen A., Sipilainen T. What is the best practice for regulation of electricity distribution? Comparison of DEA, SFA and StoNED methods // Energy Policy. 2013. Vol. 61. P. 740-750

Bogetoft P., Otto L. Benchmarking with DEA, SFA and R. Springer, 2011. 351 p.

Долматов И. А. Анализ эффективности деятельности электросетевых компаний на основе бенчмаркинга. Апробация методологии анализа для последующей организации системного мониторинга эффективносты деятельности российских электросетевых компаний / Проект института проблем ценообразования и регулирования естественных монополий, 2013. URL: https://www.hse.ru/org/projects/79645581

Костін Ю., Телігін В., Костін Д. Зарубіжний досвід регулювання електроенергетичної галузі // Вісник економічної науки України. 2018. No 1. С. 56-60. URL: http://dspace.nbuv.gov.ua/bitstream/handle/

/139861/08-Kostin.pdf?sequence=1

Agrell P., Bogetoft P. Development of benchmarking models for German electricity and gas distribution. Final report. SUMICSID AB, 2007. 122 p.

Issue

Section

LIBERALIZED MARKETS OF ENERGY