A probabilistic model for power quality regulation based on Yardstick competition

The regulation of the electricity distribution utilities has evolved to a scenario based on competition and cost-effectiveness. This cost reduction may affect the quality performance. A quality regulatory proposal based on yardstick competition is presented. The competition is against objective values of the selected zonal quality indices that are computed using a probabilistic model that takes into account the historical behavior of the distribution network. A monitoring scheme has been developed to obtain the basic reliability indices from the rough data. A methodology to segment the supplied area and an incentive/penalty scheme to encourage utilities to improve their quality indices are proposed. The implementation plan of the regulatory proposal is briefly outlined. Finally an implementation study case of the scheme is shown.