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A risk-based model for performance-based regulation of electric distribution companies

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  • Ghasemi, Mostafa
  • Dashti, Reza

Abstract

In this study, a model is presented to obtain the parameters of penalty and reward scheme (PRS) in performance-based regulation (PBR) for each electricity distribution company (EDC) using analytical hierarchy process (AHP) and fuzzy c-means clustering (FCM). In the FCM algorithm, similar companies were categorized into clusters. By using AHP, score of effective factor in reliability index was obtained. In this model, external factors affecting EDCs performance were considered to reduce the risk of PBR implementation for companies and customers. The proposed model was applied on the EDCs in Iran. The results, including AHP score, parameters of PRS and PRS cost were calculated.

Suggested Citation

  • Ghasemi, Mostafa & Dashti, Reza, 2017. "A risk-based model for performance-based regulation of electric distribution companies," Utilities Policy, Elsevier, vol. 45(C), pages 36-44.
    • Handle: RePEc:eee:juipol:v:45:y:2017:i:c:p:36-44
    DOI: 10.1016/j.jup.2017.01.001
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    References listed on IDEAS

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    Cited by:

    1. Agyekum, Ephraim Bonah & Amjad, Fahd & Mohsin, Muhammad & Ansah, Michael Nii Sanka, 2021. "A bird's eye view of Ghana's renewable energy sector environment: A Multi-Criteria Decision-Making approach," Utilities Policy, Elsevier, vol. 70(C).
    2. Mohammad Taghi Tahooneh & Reza Dashti, 2022. "A new model for calculating rational failure rates based on network assets worth," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(5), pages 2221-2233, October.
    3. Janjic, Aleksandar & Velimirovic, Lazar Z. & Vranic, Petar, 2021. "Designing an electricity distribution reward-penalty scheme based on spatial reliability statistics," Utilities Policy, Elsevier, vol. 70(C).
    4. Ghasemi, Mostafa & Dashti, Reza, 2018. "Designing a decision model to assess the reward and penalty scheme of electric distribution companies," Energy, Elsevier, vol. 147(C), pages 329-336.
    5. Petridis, Konstantinos & Ünsal, Mehmet Güray & Dey, Prasanta Kumar & Örkcü, H. Hasan, 2019. "A novel network data envelopment analysis model for performance measurement of Turkish electric distribution companies," Energy, Elsevier, vol. 174(C), pages 985-998.

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