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Assessing Regulation of Reliability of Electricity Supply

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  • B. Singh

Abstract

A review of the current regulation and performance indicates wide variation with respect to reliability of supplies in the electricity systems in Europe. Can the variation in reliability of supply be explained by differences in regulatory frameworks and is it possible to draw any best practice lessons for the future? This paper provides a cross country analysis of reliability of supply performance and regulation in the Nordic electricity market. A correlation between service reliability regulation and reliability performance is observed in the Nordic region however the current evidence is not sufficient to identify best practice. The paper also provides evidence about the resource intensive nature of detailed regulation on the basis of data concerning costs of regulation in the Nordic market. An important limitation of the currently available cross country data related to reliability performance is variation in measurement practices. In the appendix we also provide a brief overview of the reliability metrics issues; information which in our opinion is not readily available in economic publications.

Suggested Citation

  • B. Singh, 2001. "Assessing Regulation of Reliability of Electricity Supply," Competition and Regulation in Network Industries, Intersentia, vol. 2(1), pages 9-32, September.
    • Handle: RePEc:sen:journl:v:2:i:1:y:2001:p:9-32
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