Quality performance based regulation through designing reward and penalty scheme for electric distribution companies

Simab, Mohsen; Haghifam, Mahmoud Reza

doi:10.1016/j.ijepes.2012.06.070

Cited by 27 publications

(19 citation statements)

References 23 publications

(50 reference statements)

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“…The amounts of reward and penalty are capped at the specific value to avoid unreasonable amounts of reward or penalty [4]. These caps are usually considered as percentage of the annual revenue of each DisCo [4].…”

Section: ) Reward and Penalty Capsmentioning

confidence: 99%

“…These caps are usually considered as percentage of the annual revenue of each DisCo [4]. In this paper, the ceilings are determined in such a way that the total reward or penalty from all reliability indices (in this paper, SAIFI and AENS) would be lower than 5 percent of the annual revenue of each DisCo.…”

Section: ) Reward and Penalty Capsmentioning

confidence: 99%

“…One of the important features of the service quality is continuity of supply or service reliability [4]. The rewardpenalty scheme (RPS) is an effective tool for regulating service reliability [2].…”

Section: Introductionmentioning

confidence: 99%

“…If a DisCo provides better reliability than this level, it will receive bonus. On the other hand, it will be penalized if cannot satisfy the desired reliability level [2]- [4]. The regulator determines target value of the RPS using either its historic reliability data [3], or based on historical reliability data of all similar companies [5], [6].…”

Section: Introductionmentioning

confidence: 99%

“…In [4], [6], and [7], the RPS is designed based on the Data Envelopment analysis (DEA). The authors in [8] proposed a designing method that not only motivates DisCos to improve the reliability level of their networks, but also, minimizes the implementation cost of the RPS for regulator.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

A new reward-penalty mechanism for distribution companies based on concept of competition

Jooshaki

Abbaspour

Fotuhi‐Firuzabad

et al. 2014

IEEE PES Innovative Smart Grid Technologies, Europe

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In this paper, a new method for designing procedure of Reward-Penalty Scheme (RPS) in distribution system is proposed. Being fair and adoptable in viewpoint of distribution companies (DisCos) are main superiorities of the proposed RPS. Established based on concept of the Yardstick theory, its application can ensure regulators that a perfect competition will be created between DisCos to improve the service reliability. Also, such a regulation scheme can be a key for power system decision makers in order to prevent the DisCos from decreasing service reliability. Aimed to reach a fair mechanism, the proposed RPS rewards/penalizes the DisCos only compared with the other ones owning similar conditions. In this regard, Fuzzy C-means (FCM) clustering technique is applied to effectively categorize the similar DisCos into different groups. The average system reliability indices, i.e. System Average Interruption Frequency Index (SAIFI) and Expected Energy Not Supplied (EENS) are chosen as the comparison criteria in the proposed RPS. In order to illustrate efficiency of the proposed method, the proposed RPS is implemented on the Iranian electric power distribution sector to compare the abilities of different companies in reaching the predetermined goals.

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Section: ) Reward and Penalty Capsmentioning

confidence: 99%

Section: ) Reward and Penalty Capsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

A new reward-penalty mechanism for distribution companies based on concept of competition

Jooshaki

Abbaspour

Fotuhi‐Firuzabad

et al. 2014

IEEE PES Innovative Smart Grid Technologies, Europe

View full text Add to dashboard Cite

show abstract

Reliability Enhancement Strategy for Electrical Distribution Systems Considering Reward and Penalty

Kela,

Suthar,

Arya

et al. 2024

Reliability Analysis of Modern Power Systems

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Designing a new procedure for reward and penalty scheme in performance-based regulation of electricity distribution companies

Jooshaki

Abbaspour

Fotuhi‐Firuzabad

et al. 2018

Int Trans Electr Energ Syst

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Summary This paper introduces a new fuzzy‐based design procedure for more efficient application of reward‐penalty schemes in distribution sector. To achieve a fair as well as applicable regulation scheme, the fuzzy C‐means clustering algorithm is employed to efficiently determine the similarity among distribution companies. As setting procedure of the reward‐penalty scheme parameters can significantly affect the income of different companies, a new procedure based on the membership degrees obtained from the fuzzy C‐means algorithm is proposed to fairly determine these parameters for each electricity distribution company. Some numerical studies are performed on the Iranian electricity distribution companies.

show abstract

Quality performance based regulation through designing reward and penalty scheme for electric distribution companies

Cited by 27 publications

References 23 publications

A new reward-penalty mechanism for distribution companies based on concept of competition

A new reward-penalty mechanism for distribution companies based on concept of competition

Reliability Enhancement Strategy for Electrical Distribution Systems Considering Reward and Penalty

Designing a new procedure for reward and penalty scheme in performance-based regulation of electricity distribution companies

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