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The paper describes the new model for quality dependent revenue caps (the CENS arrangement), introduced by the Norwegian regulator from 2001. The arrangement takes into account all incidents in networks with voltage levels above 1 kV that results in interruptions of duration above 3 minutes. Based on estimates of energy not supplies (ENS) and average specific interruption costs for each customer category, interruption costs (IC) are calculated for each company annually. The expected level of ENS is calculated for each company and hence the expected level of IC. At the end of the year the regulator calculates the difference between expected and actual IC. If the difference is positive, i.e. the quality of supply has been better than expected, the difference will be added to the company's revenue cap. The difference will be subtracted from the revenue caps if the quality has been worse than expected.

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Quality of supply regulation is a growing area of interest in liberalized energy markets. An important basis for the quality of supply regulation and management is the documentation of existing quality levels. The documentation should be based on standardized terms for recordings and measurements. In Norway the interruption recordings are standardized from 2000 by using the fault and interruption collection tool FASIT. Voltage quality measurements are based on EN 50160. This paper presents results from six years of mandatory interruption recordings in Norway as well as results from the national voltage measurement program going on since 1992.