1. Autorità per l'energia elettrica e il gas 1 INTRODUCING PERFORMANCE STANDARDS: A FRAMEWORK LUCA LO SCHIAVO Autorità per l’energia elettrica e il gas, Italy Quality and consumers affairs, Deputy Director ERRA Workshop on Regulatory Monitoring of the Electricity Sector, Almaty, Kazakhstan, January 31st – February 2nd, 2006

2. Autorità per l'energia elettrica e il gas2 QUALITY IS MULTIDIMENSIONAL SUPPLY DISTRIBUTION VOLTAGE LIMITS VOLTAGE DIPS HARMONICS FLICKER VOLTAGE QUALITY CUSTOMER SERVICE ISSUES SECURITY DEPOSITS TOOLS FOR PAYING BILLS NON PAYMENT HANDLING DISCONNECTIONS FOR DEBT COMPLAINTS READING BILLING COMMERCIAL QUALITY APPOINTMENTS RICONNECTIONS AFTER NON-PAYMENT DISCONNECTIONS NEW SUPPLY ESTIMATES CONNECTIONS TO NETWORK PROVIDING SUPPLY VOLTAGE AND METERS INVESTIGATIONS CONTINUITY OF SUPPLY NON PLANNED SUPPLY INTERRUPTIONS (LONG AND SHORT) PLANNED (NOTIFIED) SUPPLY INTERRUPTIONS ELECTRICITY SERVICE (GENERATION & TRANSMISSION )

3. Autorità per l'energia elettrica e il gas3 QUALITY REGULATION HAS TO BE SIMPLE… MAKE INFORMATION AVAILABLE SET RELIABLE MEASUREMENT RULES FOR QUALITY FACTORS PUBLISH ACTUAL QUALITY LEVELS PROTECT WORST-SERVED CUSTOMERS PROMOTE QUALITY IMPROVEMENT FAVOUR AND TEST MARKET MECHANISMS REGULATION OF QUALITY SET AND MAINTAIN GUARANTEED QUALITY STANDARDS DETERMINE INDIVIDUAL COMPENSATIONS FOR STANDARD MISMATCHING SET AND MAINTAIN OVERALL QUALITY STANDARDS LINK QUALITY AND REVENUES (TARIFFS) PREFER CUSTOMER CHOICE WHENEVER POSSIBLE AND SAFE PREREQUISITE INCENTIVE QUALITY REGULATION (P.B.R.) COMPETITION …BUT NOT TOO MUCH

4. Autorità per l'energia elettrica e il gas4 A MAP FOR REGULATION OF QUALITY VOLTAGE QUALITY CONTINUITY OF SUPPLY COMMERCIAL QUALITY CUSTOMER SERVICE ISSUES FAVOUR AND TEST MARKET MECHANISMS PROMOTE QUALITY IMPROVEMENT PROTECT WORST-SERVED CUSTOMERS MAKE INFORMATION AVAILABLE

5. Autorità per l'energia elettrica e il gas5 A MAP FOR REGULATION OF QUALITY VOLTAGE QUALITY CONTINUITY OF SUPPLY COMMERCIAL QUALITY CUSTOMER SERVICE ISSUES FAVOUR AND TEST MARKET MECHANISMS PROMOTE QUALITY IMPROVEMENT PROTECT WORST-SERVED CUSTOMERS MAKE INFORMATION AVAILABLE Guaranteed standards

6. Autorità per l'energia elettrica e il gas6 TWO TYPES OF QUALITY STANDARDS –GUARANTEED STANDARDS: REFERRED TO EACH SINGLE TRANSACTION BETWEEN CUSTOMER AND UTILITY; EX: maximum time to connect the customer with simple work maximum number of interruptions per year that affect the single customer –OVERALL STANDARDS: REFERRED TO THE AVERAGE PERFORMANCE OF THE UTILITY IN A GIVEN AREA at least 90% of customer’s claims answered within the maximum time for substantial reply maximum number of interruptions per year per customer (average in a given area) IT’S UP TO THE AUTHORITY TO CHOOSE WHICH TYPE OF STANDARDS APPLY TO DIFFERENT QUALITY ISSUES INDIVIDUAL AND OVERALL STANDARDS

7. Autorità per l'energia elettrica e il gas7 INDIVIDUAL STANDARDS: REFERRED TO EACH SINGLE TRANSACTION BETWEEN CUSTOMER AND UTILITY; IN CASE OF MISMATCH DUE TO THE UTILITY, THE AFFECTED CUSTOMER RECEIVE AUTOMATICALLY A COMPENSATION PAYMENT QUALITY (INDIVIDUAL) STANDARD: MAXIMUM TIME TO CONNECT THE CUSTOMER WITH SIMPLE WORK –MAXIMUM TIME = 10 WORKDAYS –NUMBER OF REQUESTS: 100 –NUMBER OF CASES CONNECTED IN MORE THAN 10 DAYS: 13 –OF WHICH: DUE TO CUSTOMER DELAYS OR FORCE MAJEURE: 3 –NUMBER OF COMPENSATION PAYMENTS: 10 GUARANTEED STANDARDS: AN EXAMPLE

8. Autorità per l'energia elettrica e il gas8 Individual Standard: 10 workdays Actual avg: 7,7 workdays workdays GUARANTEED STANDARDS: AN EXAMPLE COMPENSATION PAYMENTS

9. Autorità per l'energia elettrica e il gas9 OVERALL STANDARDS: REFERRED TO THE AVERAGE PERFORMANCE OF THE UTILITY IN A GIVEN AREA IN CASE OF MISMATCH DUE TO THE UTILITY, THE AFFECTED CUSTOMER DO NOT RECEIVE ANY COMPENSATION PAYMENT QUALITY (OVERALL) STANDARD: MAXIMUM TIME TO CONNECT THE CUSTOMER WITH COMPLEX WORK –MAXIMUM TIME = 40 WORKDAYS –QUALITY STANDARD: AT LEAST 90% WITHIN MAX.TIME –NUMBER OF REQUESTS: 100 –NUMBER OF CASES CONNECTED IN MORE THAN 40 DAYS: 13 –OF WHICH: DUE TO CUSTOMER DELAYS OR FORCE MAJEURE: 3 –% OF MISMATCH DUE TO UTILITY = (13-3)/(100-3) = 10,3% –Therefore the utility doesn’t comply with the standard (89,7%) OVERALL STANDARDS: AN EXAMPLE

10. Autorità per l'energia elettrica e il gas10 OVERALL STANDARDS: AN EXAMPLE Overall Standard: at least 90% within 40 workdays Actual avg: 30,8 workdays workdays ACTUAL COMPLIANCE: 89,7%

11. Autorità per l'energia elettrica e il gas11 GUARANTEED STANDARDS Source: CEER 2nd Benchmarking, 2003

12. Autorità per l'energia elettrica e il gas12 GUARANTEED STANDARDS: the most common Number of Countries GSOSTot Connection (supply/meter) 5 2 7 Connection (simple works) 4 3 7 Response to cust. claims 3 4 7 Estimating charges 5 1 6 Meter verification 4 2 6 Appointments scheduling 5 1 6 Queries on bills 4 2 6 Readings 1 5 6 Source: CEER 2nd Benchmarking, 2003

13. Autorità per l'energia elettrica e il gas13 GUARANTEED STANDARDS: compensations to domestic customers CountryTypeEuro Italyautomatic30 Franceautomatic25 Great Britainautomatic/~30-60 on request Portugalautomatic15 Irelandautomatic 35 Spainautomatic30 or 10% of bill Source: CEER 2nd Benchmarking, 2003

14. Autorità per l'energia elettrica e il gas14 GUARANTEED STANDARDS: Implementation problems Defining content of services subject to standards: e.g. “simple works” Including/excluding delays due to customer or public authorisation Documentation of customer no-show (no right to compensation) Data publication: % of requests with standard not fulfilled, average times

15. Autorità per l'energia elettrica e il gas15 A MAP FOR REGULATION OF QUALITY VOLTAGE QUALITY CONTINUITY OF SUPPLY Guaranteed standards COMMERCIAL QUALITY CUSTOMER SERVICE ISSUES FAVOUR AND TEST MARKET MECHANISMS PROMOTE QUALITY IMPROVEMENT PROTECT WORST-SERVED CUSTOMERS MAKE INFORMATION AVAILABLE Measurement guidance

16. Autorità per l'energia elettrica e il gas16 WHAT IS AN INTERRUPTION Interruption: the situation in which a consumer is no longer supplied with electricity Continuity of supply: absence of interruptions the voltage magnitude is zero different types of interruption Long (duration > 3 min) vs short (duration <= 3 min) Unplanned (due to failures, momentary contacts, users’ plants faults, etc) vs scheduled (due to network operator’s intervention in order to allow preventive maintenance)

17. Autorità per l'energia elettrica e il gas17 HOW CONTINUITY IS MEASURED Interruptions are described through –Time between events or number of interruptions (for each type) in a period of time (in general, 1 year) and in a given distribution territory (homogenous!) of N customers SAIFI: average number of long interruptions per customer per year (MAIFI for short interr.) SAIDI: average duration of interruption per customer per year –Per each interruption of the same type, main characteristics to be recorded are Duration (time of start & finish) D i  SAIDI Customers affected (involved) N i  SAIFI, SAIDI

18. Autorità per l'energia elettrica e il gas18 A territorial classification is needed in order to set separate and acceptable standards Italian classification Urban (“high density”) areas: territory of municipalities with more than 50,000 inhabitants Sub-urban (“medium density”) areas: territory of municipalities with more than 5,000 and less than 50,000 inhabitants Rural (“low density”) areas: territory of municipalities with less than 5,000 inhabitants In other EU countries different criteria are adopted; in some cases ex-post methods are adopted (f.i. Great Britain and Sweden) TERRITORIAL CLASSIFICATION OF CUSTOMER AFFECTED

19. Autorità per l'energia elettrica e il gas19 TIME TaTbTc Lost minutes = U1*Ta + U2*Tb + U3*Tc U1*Ta + U2*Tb + U3*Tc Contribute to SAIDI of the current interrupt. Total users supplied = UNPOWERED USERS U3 U2 U1 CALCULATION OF SAIDI

20. Autorità per l'energia elettrica e il gas20 WHO MEASURES CONTINUITY Distribution company –Remote control system (SCADA): allow automatic registration of each interruptions starting time Italy: compulsory on each HV circuit and each MV circuit –Interruption register: contain all data requested for each interruption (manually updated) Italy: compulsory for each long and short interruption; users can have access to the register Regulatory Authority –Is provided each year with continuity indicators and an electronic copy of the register and makes audits Italy: SAIDI, SAIFI, MAIFI, per each territorial district (300) Customers: information yearly for major customers Italy: customer can ask for individual measurement

21. Autorità per l'energia elettrica e il gas21 Interruption record CML-urb= ( 6 * 500 * 15) / 7000 CML-rur= ( 2 * 50 * 15) / 200 CML-rur= ( 3 * 200 * 15) / 1400 EXAMPLE OF INTERRUPTION REGISTER/1 DISCO main data

22. Autorità per l'energia elettrica e il gas22 Interruption record DOCUMENTATION OF FORCE MAJEURE (exceeding network design requirements) CML-rur= ( 2 * 50 * 150) / 200 EXAMPLE OF INTERRUPTION REGISTER/2 DISCO main data

23. Autorità per l'energia elettrica e il gas23 Force Majeure External causes Disco’s Resp. THVMVLVTotal Force Majeure External causes Disco’s Resp. THVMVLVTotal Lost minutes per user Number of interruption per user DISCO: COMPANY A Territorial area: urban Year: 2002 Type of interruption: long unplanned Respon- sibility Voltage levels EXAMPLE OF CONTINUITY YEARLY DATA PROVIDED TO THE AUTHORITY

24. Autorità per l'energia elettrica e il gas24 THE ITALIAN SCHEME FOR MONITORING SIMPLE INDICATORS (SAIDI/SAIFI) FOR EACH DISTRICT

25. Autorità per l'energia elettrica e il gas25 CONTROL OF CONTINUITY OF SUPPLY Criteria and procedures Data on continuity levels are provided by utilities The authority must control that interruptions are recorded in a complete and satisfactory manner, according to the measurement rules. Districts to be audited are strategically selected (in 4 years, around 50% of districts controlled). –an audit may last a couple days and is conducted in site at the SCADA operating centre by 3 inspectors Interruptions audited are randomly sampled –Generally, at least 5% of the total number of interruption events is verified during an audit. Results are evaluated through quantitative indexes; negative audits have economic effects

26. Autorità per l'energia elettrica e il gas26 IMPLEMENTATION PROBLEMS Distribution utilities have generally accepted the new regulation Measurement system is recognised to be fair and seriously implemented Problems have been encountered in defining Force Majeure and have led to a statistical system (started in 2004 on optional basis) Correctness index has been contested in the beginning but after a review of audit procedures has been accepted as well Some problems have been found on starting-levels data (years 1998-99) in three regions (out of 20) and have led to special regulation for these regions –In this case a sanction was imposed as well; so far it’s a unique case

27. Autorità per l'energia elettrica e il gas27 A MAP FOR REGULATION OF QUALITY Incentive/ penalty schemes VOLTAGE QUALITY CONTINUITY OF SUPPLY Guaranteed standards COMMERCIAL QUALITY CUSTOMER SERVICE ISSUES FAVOUR AND TEST MARKET MECHANISMS PROMOTE QUALITY IMPROVEMENT PROTECT WORST-SERVED CUSTOMERS MAKE INFORMATION AVAILABLE Measurement guidance

28. Autorità per l'energia elettrica e il gas28 MAIN EXPERIENCES: DISTRIBUTION Italy (started in 2000, renewed in 2004) Norway (started in 2001) Great Britain (started in 2002, renewed in 2005) Ireland (started in 2002) Hungary (started in 2003) Sweden (started in 2003) Portugal (started in 2004) Estonia (started in 2005) INCENTIVE/PENALTY SCHEMES Comparing Regulations in EU All these incentive schemes have been compared in the 3rd CEER Benchmarking Report on Quality of Supply (available on the CEER website!)

29. Autorità per l'energia elettrica e il gas29 A SIMPLE INCENTIVE/PENALTY SCHEME: PORTUGAL INCENTIVE/PENALTY SCHEMES Comparing Regulations in EU END Ref : target [MWh not supplied]   V: deadband RQS: incentive/penalty for quality of supply [€] if END actual worse than END Ref -  V then RQS>0 (up to RQS max ) if END actual better than END Ref +  V then RQS<0 (down to RQS min )

30. Autorità per l'energia elettrica e il gas30 CONTINUITY OF SUPPLY REGULATION The Italian incentive scheme/1  ENHANCE THE OVERALL LEVEL OF CONTINUITY IN ITALY  IMPROVE THE COUNTRY AVERAGE LEVEL TOWARDS EUROPEAN BENCHMARKS  REDUCE THE GAPS BETWEEN NORTH AND SOUTH  REDUCE VARIATION OF REGIONAL AND DISTRICT LEVELS AROUND THE COUNTRY AVERAGE LEVEL  MAINTAIN LEVELS OF CONTINUITY IF ALREADY GOOD  AVOID TO DETERIORATE BEST-SERVED AREAS

31. Autorità per l'energia elettrica e il gas31 CONTINUITY OF SUPPLY REGULATION The Italian incentive scheme/2 CONTINUITY INDICATOR ORIENTED TO POINT OUT THE RESPONSIBILITY OF DISTRIBUTION SUPPLIERS –MINUTES LOST PER LV USERS, NET OF INTERRUPTIONS CAUSED BY ACT OF GOD AND BY USERS OR THIRD PARTIES AND NET OF INTERRUPTIONS ORIGINATED IN THE EHV/HV NETWORK CONTINUITY INDICATORS MEASURED AT DISTRICT LEVEL –300 DISTRICTS (ABOUT 100 FOR URBAN AREAS, 100 FOR SUBURBAN, 100 FOR RURAL AREAS) COVERING ALMOST ALL THE COUNTRY MECHANISMS TO MAKE THE INDICATOR MORE SOUND IN RESPECT OF WEATHER EFFECTS –2-YEARS ROLLING AVERAGE –DEADBANDS (+/- 5%)

32. Autorità per l'energia elettrica e il gas32 CONTINUITY OF SUPPLY REGULATION The Italian incentive scheme/4 THE MAIN IDEA: A CONVERGENCY SYSTEM LOCAL CONTINUITY STDs AVERAGE OF LOC. CONT. STDs NATIONAL REFERENCE STDs STARTING LEVELS CUST.MIN.LOST IMPROVEMENT YEARS IF UTILITIES IMPROVE CONTINUITY MORE THAN REQUIRED GAIN AN EXTRA INCENTIVE IF UTILITIES IMPROVE CONTINUITY LESS THAN REQUIRED MUST PAY A PENALTY IF UTILITIES IMPROVE CONTINUITY AS REQUIRED (DEAD-BAND +/-5%), NEITHER INCENTIVES NOR PENALTIES APPLY

33. Autorità per l'energia elettrica e il gas33 0 20 40 60 80 100 120 1998199920002001200220032004 YEARS MINUTES LOST ACTUAL LEVEL (SIMULATION 2000-04) ACTUAL 2-YEAR ROLLING AVERAGE DISTRICT-WIDE BASIC STANDARD NATION-WIDE REFERENCE STANDARD CONTINUITY OF SUPPLY REGULATION The Italian incentive scheme/4 Example for an urban district /I EXPLANATIONS: 1998-1999: THE STARTING POINT IS THE 2-YEAR AVERAGE OF ACTUAL LEVELS FOR YEARS 1998-1999

34. Autorità per l'energia elettrica e il gas34 0 20 40 60 80 100 120 1998199920002001200220032004 YEARS MINUTES LOST ACTUAL LEVEL (SIMULATION 2000-04) ACTUAL 2-YEAR ROLLING AVERAGE DISTRICT-WIDE BASIC STANDARD NATION-WIDE REFERENCE STANDARD CONTINUITY OF SUPPLY REGULATION The Italian incentive scheme/4 Example for an urban district /II EXPLANATIONS: STANDARD SETTING: BASIC IMPROVEMENT RATES ARE APPLIED TO THE STARTING POINT, TO SET STANDARDS

35. Autorità per l'energia elettrica e il gas35 0 20 40 60 80 100 120 1998199920002001200220032004 YEARS MINUTES LOST ACTUAL LEVEL (SIMULATION 2000-04) ACTUAL 2-YEAR ROLLING AVERAGE DISTRICT-WIDE BASIC STANDARD NATION-WIDE REFERENCE STANDARD EXPLANATIONS: 2000: ACTUAL 2- YEAR AVERAGE (1999-2000) BETTER THAN STANDARD, BUT IN THE DEADBAND: NEITHER INCENTIVE NOR PENALTY CONTINUITY OF SUPPLY REGULATION The Italian incentive scheme/4 Example for an urban district /III

36. Autorità per l'energia elettrica e il gas36 0 20 40 60 80 100 120 1998199920002001200220032004 YEARS MINUTES LOST ACTUAL LEVEL (SIMULATION 2000-04) ACTUAL 2-YEAR ROLLING AVERAGE DISTRICT-WIDE BASIC STANDARD NATION-WIDE REFERENCE STANDARD EXPLANATIONS: 2001: ACTUAL LEVEL WORSE THAN BASIC STANDARD, BUT 2-YEAR AVERAGE IN THE DEADBAND: NEITHER INCENTIVE NOR PENALTY CONTINUITY OF SUPPLY REGULATION The Italian incentive scheme/4 Example for an urban district /IV

37. Autorità per l'energia elettrica e il gas37 0 20 40 60 80 100 120 1998199920002001200220032004 YEARS MINUTES LOST ACTUAL LEVEL (SIMULATION 2000-04) ACTUAL 2-YEAR ROLLING AVERAGE DISTRICT-WIDE BASIC STANDARD NATION-WIDE REFERENCE STANDARD CONTINUITY OF SUPPLY REGULATION The Italian incentive scheme/4 Example for an urban district /V EXPLANATIONS: 2002: ACTUAL LEVEL BETTER THAN BASIC STANDARD, AND 2-YEAR AVERAGE OUTSIDE THE DEADBAND: INCENTIVE, PROPORTIONAL TO THE DISTANCE BETWEEN BASIC STANDARD AND 2-YEAR ROLLING AVERAGE

38. Autorità per l'energia elettrica e il gas38 0 20 40 60 80 100 120 1998199920002001200220032004 YEARS MINUTES LOST ACTUAL LEVEL (SIMULATION 2000-04) ACTUAL 2-YEAR ROLLING AVERAGE DISTRICT-WIDE BASIC STANDARD NATION-WIDE REFERENCE STANDARD EXPLANATIONS: 2002 AND 2003: INCENTIVE LINKED TO THE ARROWS (= DIFFERENCE BETWEEN BASIC STANDARD AND 2-YEAR ROLLING AVERAG E) CONTINUITY OF SUPPLY REGULATION The Italian incentive scheme/4 Example for an urban district /VI

39. Autorità per l'energia elettrica e il gas39 CONTINUITY OF SUPPLY REGULATION The Italian incentive scheme/5 How is it funded? THE INCENTIVE SYSTEM IS FUNDED THROUGH: –THE PENALTIES PAID BY UTILITIES FOR DISTRICTS IN WHICH THE BASIC IMPROVEMENT RATES ARE NOT MET –A Q-PARAMETER IN THE PRICE-CAP FORMULA:  P = RPI -X +Q TO COLLECT THE DIFFERENCE BETWEEN INCENTIVES AND PENALTIES BECAUSE TARIFF IS UNIQUE, AN EQUALISATION FUND IS NEEDED TO DISTRIBUTE INCENTIVES/PENALTIES TO UTILITIES ACCORDING TO RESULTS: example urbansemi-urbanrural distributor 1+-= distributor 2-=+ distributor 3++- Equalization Fund 3 penalties from distributors 1 collected from tariffs (Q-parameter) 4 incentives to distributors deadbands 2 x 0 = 0 penalties 3 x (-1)= -3 net (to be collected) 1 incentives 4 x (+1) = 4 Ipothesis: same incentive or penalty in each district

40. Autorità per l'energia elettrica e il gas40 CONTINUITY OF SUPPLY REGULATION The Italian incentive scheme - effects/6a AVERAGE EXTRA-PRICE FOR CUSTOMERS OVER 4 YEARS (2000-2003): ABOUT 3 €/CUSTOMER/YEAR

41. Autorità per l'energia elettrica e il gas41 CONTINUITY OF SUPPLY REGULATION The Italian incentive scheme - effects/6b

42. Autorità per l'energia elettrica e il gas42 CONTINUITY OF SUPPLY REGULATION The Italian incentive scheme - effects/6c

43. Autorità per l'energia elettrica e il gas43 EVALUATING EFFECTS IN THE CUSTOMER’S PERSPECTIVE

44. Autorità per l'energia elettrica e il gas44 A MAP FOR REGULATION OF QUALITY Multiple or very long interrup. VOLTAGE QUALITY CONTINUITY OF SUPPLY Guaranteed standards COMMERCIAL QUALITY CUSTOMER SERVICE ISSUES FAVOUR AND TEST MARKET MECHANISMS PROMOTE QUALITY IMPROVEMENT PROTECT WORST-SERVED CUSTOMERS MAKE INFORMATION AVAILABLE Incentive/ penalty scheme Measurement guidance

45. Autorità per l'energia elettrica e il gas45 MULTIPLE LONG INTERRUPTIONS Great Britain Italy Spain France MULTIPLE SHORT INTERRUPTIONS France VERY LONG INTERRUPTIONS Great Britain France MULTIPLE/VERY LONG INTERR. SCHEME Comparing Regulations in EU /1 All these standards have been compared in the 3rd CEER Benchmarking Report on Quality of Supply (available on the CEER website!)

46. Autorità per l'energia elettrica e il gas46 VERY LONG INTERRUP. SCHEMES Comparing Regulations in EU /4 GREAT BRITAIN Normal situation (non-severe weather): 18 hours Severe weather: 3 types of events, 24 to 96 hours Compensation: £25 at the trigger + £25 every 12 hours Allowance pre-set in the tariff (initially a partial cost recovery was admitted) Transmission faults excluded FRANCE 6 hours (excluded very rare events: probability 100.000 customers affected) Compensation: 2% of fixed part of tariff every 6 hours Transmission faults included

47. Autorità per l'energia elettrica e il gas47 UK classification of severe weather GREAT BRITAIN

48. Autorità per l'energia elettrica e il gas48 A MAP FOR REGULATION OF QUALITY: to be continued … VOLTAGE QUALITY CONTINUITY OF SUPPLY Guaranteed standards COMMERCIAL QUALITY CUSTOMER SERVICE ISSUES FAVOUR AND TEST MARKET MECHANISMS PROMOTE QUALITY IMPROVEMENT PROTECT WORST-SERVED CUSTOMERS MAKE INFORMATION AVAILABLE Incentive/ penalty scheme Multiple or very long interrup. Public service obligations Codes of conduct Monitoring campaigns Guaranteed PQ standards Power quality contracts Teleph. Qual. incentives Measurement guidance Competitive connections Last resort supplier

49. Autorità per l'energia elettrica e il gas49 QUALITY REGULATION REQUIRES TIME… … AND CONSTANCE!

50. Autorità per l'energia elettrica e il gas50 WHICH SUGGESTIONS FOR “BEGINNERS” Quality regulation is an opportunity both for regulator (not only cost-cutting!) and for companies (improvement can have an economic pay back), but… First of all, you need a sound measurement system before setting standards Suggested to start only with verifiable measures (coming from the part of the network equipped with remote control) Audits are essential to gain the attention of network middle management and information systems engineers When setting standards, graduality pays: start with a few indicators and with not-too-aggressive standards, and enlarge the quality aspects, raising the standards over time Implementation is the hard work: you must found viable solutions, because the aim is improving, not sanctioning