The importance of incorporating reliability of supply criteria in a regulatory system of electricity distribution: An empirical analysis for Austria
Grid tariffs are the main source of income for distribution system operators (DSOs). Reductions of tariffs increase the cost pressure on DSOs; assuming they work efficiently, tariff reductions potentially lead to a decrease of the electricity system's quality if no reliability of supply criteria are incorporated in the regulatory system. Our statistical analysis shows that the correlation between grid tariffs and electricity supply interruptions in a regulatory regime neglecting this incorporation is significant and that furthermore decreasing tariffs harm the reliability of supply even in the short run. Our econometric analysis of the influence of tariffs on reliability of supply shows a significant correlation between the grid tariffs and the duration of power outages in the Austrian electricity grid; an annual average interruption duration per installed capacity of a specific grid increases ceteris paribus by 1.36Â min if the grid tariff of this specific grid is decreased in the previous year by 1[euro]/MWh.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fredrik Carlsson & Peter Martinsson, 2007.
"Willingness to Pay among Swedish Households to Avoid Power Outages: A Random Parameter Tobit Model Approach,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 1), pages 75-90.
- Carlsson, Fredrik & Martinsson, Peter, 2004. "Willingness to Pay among Swedish Households to Avoid Power Outages - A Random Parameter Tobit Model Approach," Working Papers in Economics 154, University of Gothenburg, Department of Economics.
- Yu, W. & Jamasb, T. & Pollitt, M., 2007. "Incorporating the Price of Quality in Efficiency Analysis: the Case of Electricity Distribution Regulation in the UK," Cambridge Working Papers in Economics 0736, Faculty of Economics, University of Cambridge.
- Jamasb, T. & Pollitt, M., 2007.
"Incentive Regulation of Electricity Distribution Networks: Lessons of Experience from Britain,"
Cambridge Working Papers in Economics
0709, Faculty of Economics, University of Cambridge.
- Jamasb, Tooraj & Pollitt, Michael, 2007. "Incentive regulation of electricity distribution networks: Lessons of experience from Britain," Energy Policy, Elsevier, vol. 35(12), pages 6163-6187, December.
- Klaus Moeltner & David F. Layton, 2002.
"A Censored Random Coefficients Model For Pooled Survey Data With Application To The Estimation Of Power Outage Costs,"
The Review of Economics and Statistics,
MIT Press, vol. 84(3), pages 552-561, August.
- David F. Layton & Klaus Moeltner, 2000. "A Censored Random Coefficients Model for Pooled Survey Data with Application to the Estimation of Power Outage Costs," Econometric Society World Congress 2000 Contributed Papers 0912, Econometric Society.
- Carlsson, Fredrik & Martinsson, Peter, 2004.
"Does it Matter When a Power Outage Occurs? - A Choice Experiment Study on the Willingness to Pay to Avoid Power Outages,"
Working Papers in Economics
155, University of Gothenburg, Department of Economics.
- Carlsson, Fredrik & Martinsson, Peter, 2008. "Does it matter when a power outage occurs? -- A choice experiment study on the willingness to pay to avoid power outages," Energy Economics, Elsevier, vol. 30(3), pages 1232-1245, May.
- Noel Uri, 2003. "The Impact of Incentive Regulation on Service Quality in Telecommunications in the United States," Journal of Media Economics, Taylor & Francis Journals, vol. 16(4), pages 265-280.
- Mehdi Farsi & Massimo Filippini & William Greene, 2005.
"Application of Panel Data Models in Benchmarking Analysis of the Electrivity Distribution Sector,"
CEPE Working paper series
05-39, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Mehdi Farsi & Massimo Filippini & William Greene, 2006. "Application Of Panel Data Models In Benchmarking Analysis Of The Electricity Distribution Sector ," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(3), pages 271-290, 09.
- Beenstock, Michael & Goldin, Ephraim & Haitovsky, Yoel, 1998. "Response bias in a conjoint analysis of power outages," Energy Economics, Elsevier, vol. 20(2), pages 135-156, April.
- Giannakis, Dimitrios & Jamasb, Tooraj & Pollitt, Michael, 2005. "Benchmarking and incentive regulation of quality of service: an application to the UK electricity distribution networks," Energy Policy, Elsevier, vol. 33(17), pages 2256-2271, November.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:36:y:2008:i:10:p:3862-3871. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.