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Continuity of Supply in The Portuguese Distribution Network and Comparison With Other European Countries
Continuity of Supply in The Portuguese Distribution Network and Comparison With Other European Countries
Continuity of Supply in The Portuguese Distribution Network and Comparison With Other European Countries
Abstract-In the present paper, the evolution of the continuity of of improving the utilities' economic efficiency, their allowed
supply in the Portuguese distribution network is analyzed revenues are capped in a level that does not necessarily reflect
considering different performance indices, such as the number the actual costs, leading firms to avoid investments and
and duration of planned and unplanned interruptions. For the consequently to decrease the quality of service provided to
unplanned interruptions, special attention is given to the customers [2], [4], [5].
contribution of exceptional events. The continuity of supply
performance of the Portuguese distribution network is then This regulation, namely in what concerns continuity of
compared with the European average performance. In addition, supply dimension, can be exercised with recourse to a set of
the different countries are clustered according to technical direct and indirect instruments such as the definition of
characteristics of their networks and the continuity of supply minimum standards for the continuity of supply indicators and
indicators of each cluster are compared. The main conclusions respective individual monetary compensations, financial
of the paper are (i) that the Portuguese distribution network has incentive schemes, regular reporting of continuity of supply
significantly improved its performance during the last 10 years indicators and national and international benchmarking [2],
and still has potential for improvement; and (ii) that technical [3], [6].
characteristics, namely the degree of undergrounding, are an
important determinant of technical quality measured by existing In order to simulate a competitive environment and
indices. contribute to the continuity of supply performance
improvement of regulated companies, the different standards,
Index Terms- Benchmarking, continuity of supply, electricity monetary compensations and fmancial incentive parameters
distribution, regulation. should be periodically adjusted in accordance with the
evolution of the continuity of supply performance.
I. INTRODUCTION
In this regard, integrated in the preparatory work carried
The liberalization of the electricity sector establishes the out for the revision of the Portuguese quality of service code,
separation of basic functions of electricity generation, scheduled for the fIrst semester of 2013, this paper presents an
transmission, distribution and supply (or retailing). However, analysis of the Portuguese distribution network performance
while in the generation and supply functions a potential for evolution in what concerns continuity of supply and compares
competition exists, in the transmission and distribution this evolution with the performance of other European
networks, their natural monopoly nature requires regulation to countries. Thus, in the paper, the main instruments applied to
induce optimal price and quality of service [1]-[3]. the continuity of supply regulation in Portugal are initially
The quality of service regulation, with its three described. Following, the evolution of some of the Portuguese
dimensions, continuity of supply (network reliability and continuity of supply indicators are analyzed for the period
availability), voltage quality (characteristics of the supply 2001-2011 and compared to the average performance of some
voltage) and commercial quality (timeliness in dealing with European countries represented in the Council of European
customers' requests) provides a balance between customers' Energy Regulators (CEER). Finally, the different countries are
willingness to pay network tariffs and their expectations on clustered according to technical characteristics of their
minimum levels of quality of service. This topic became more networks and the continuity of supply indicators of each
relevant with the evolution from a rate-of-return economic cluster are compared.
regulation, in which total utility costs were fully recouped by
the tariff, to a price-cap regulation, wherein, with the objective
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II. CONTINUITY OF SUPPLY REGULAnON IN PORTUGAL B. Standards and Individual Monetary Compensations
In Portugal, the fIrst steps of the electricity sector Standards for continuity of supply indicators and
liberalization started in 1995. As result, with the objective of individual monetary compensations resulting from
defming the minimum quality of service standards that utilities noncompliance with the standards are considered in the
should provide to customers and the practices used to monitor quality of electricity supply code. Those standards, expressed
the compliance with those standards, the government in the form of limits to the number and duration of
published the fIrst Portuguese code on the quality of electricity interruptions experienced by each customer per year, represent
supply in the year 2000. This code, comprising the continuity a commitment of the company with their customers to
of supply, voltage quality and commercial quality dimensions maintain a certain level of quality of supply. Whenever
was revised in the years 2003 and 2006 [7]. individual limits are exceeded, customers must be informed
and monetary compensations must be paid. Since individual
Until 2012, the role of Portuguese national regulatory monetary compensations paid to customers should act as a
authority for energy services (ERSE) on the quality of stimulus to the company to improve its continuity of supply,
electricity supply subject was limited to the supervision of the total amount of monetary compensations annually paid to
compliance with the quality of electricity supply code and to customers is subtracted to its allowed revenues.
the defInition of regulatory incentives for improvements in
continuity of supply. However, new legislation, published in Considering that the demography, as well as technical
September and October 2012, transferred to ERSE the power characteristics of the distribution network, is not homogeneous
to prepare and approve the national regulatory framework on along the country, different standards are defIned according to
the quality of electricity supply. In this regard, ERSE is three kinds of areas, urban, sub-urban and rural. In urban areas
promoting a revision of the quality of supply code, scheduled it is assumed that the distribution network mainly comprises
for 2013. underground cables in LV and MY and, as such, more
demanding standards are prescribed. On the other hand,
A. Indicators for the Continuty of Supply Characterization
standards for rural areas are less demanding, since the
The regular operation of distribution networks can be respective MV and LV networks are characterized by long
disrupted by several internal (malfunctions of network overhead lines often exposed to the elements. Sub-urban areas
equipment) or external sources (as for instance extreme represent a transition zone between rural and urban areas. In
atmospheric phenomena) that usually result in interruptions of this sense, standards for continuity of supply indicators are in
the customers electricity supply. between those defmed for urban and rural areas.
The measurement of actual continuity of supply levels C. Incentive for the Continuity ofSupply in the Distribution
through indicators and standards constitutes one of the basic Network
instruments for regulating continuity of supply [2]. In the
In the quality of electricity supply code, in complement to
Portuguese quality of electricity supply code, a set of standards and individual monetary compensations, incentive
indicators to measure the number and duration of long term schemes comprising revenue increases (rewards) and
interruptions (over 3 minutes) are defIned. Those main decreases (penalties) can be developed. Portugal is considered
indicators are: one of the pioneers in Europe regarding the implementation of
• TIEPI MV - Average duration of interruptions in an incentive for the continuity of supply in the distribution
medium voltage per installed capacity, per year; network [6], [9].
• END - Energy not distributed due to interruptions, per ERSE implemented this incentive scheme in 2003 in order
year; to stimulate a perfonnance increase in the medium voltage
(MV) distribution network. The incentive scheme is based on
• SAID! MV - Average duration of interruptions in historical values of the energy not distributed (ENDret)
medium voltage per customer, per year; indicator. As presented in Fig. 1, a dead band (ENDref ± L1V)
is used to avoid the incentive activation when small
• SAIFI MV - Average number of interruptions in
performance improvement or deterioration is experienced. On
medium voltage per customer, per year;
the other hand, in order to avoid overstating the impact of the
• SAIDI LV - Average duration of interruptions in low incentive on the company economic results, maximum amount
voltage per customer, per year; of reward (RQSmax) and penalty (RQSmin) are defIned.
Reward and penalty limits are symmetric and, at moment, its
• SAIFI LV - Average number of interruptions in low value is fIxed at 5 million euro. When the performance
voltage per customer, per year. improvement or deterioration is placed between the dead band
SAID! and SAIFI indicators, mainly focused in the boundaries and the reward and penalty limits, the amount of
domestic customer perspective (weighted by the number of the incentive is computed based on the valorization of the
customers), are those used in most European countries to energy not distributed (VEND), 1.5 euro/kWh.
characterize the continuity of supply. In addition, in Portugal
and Spain, TIEPI MY is used to characterize the continuity of
supply of industrial customers, since it is weighted by the
installed capacity, and used for distribution network planning
purposes by the operators [8].
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TABLE T. OVERALL LINES LENGTH (KM)
€
Voltage Level
Lines
HV MV LV
Overhead 8592 58 133 106 744
END (kWh )
END RE F-t,v
TABLE I!. SUBSTATIONS AND TRANSFORMERS
RQSmin
Capacity
Voltage Level Number
Figure I. Incentive scheme for the continuity of supply in MV network. (MVA)
HVIMV
D. Reporting and Benchmarking Quality ofElectricity Substations 411
and 16 809
Supply
My/MV Transformers 721
One of the indirect instruments of the quality of electricity
supply regulation is the systematic publication of information MV/LV Transformers 64 458 19 417
about networks performance and benchmarking those results
between different companies [3].
The percentage of underground cables in the MV grid is
In this regard, the present Portuguese quality of electricity
22%, mainly corresponding to the supply of MV/LV
supply code requires network operators to publish an annual
transformers placed in urban and sub-urban areas. In the LV
report including information about their performance,
grid, the percentage of underground cables is similar to MY,
expressed by different indicators defined for continuity of
23%, also corresponding to the supply in urban and sub-urban
supply, voltage quality and commercial quality, and including
areas.
information about number and amount of monetary
compensations to customers that result from noncompliance Regarding the annual investment in the Portuguese
with minimal quality standards. Also a description of the distribution network, at 2011, capital expenses (CAPEX) and
events that led to the main interruptions occurred over the year operational expenses (aPEX) corresponded to about
must be included in the report. The report on the quality of 83 euro/customer and 70 euro/customer, respectively.
electricity supply of each company must be available on its
website. B. Evolution ofPlanned and Unplanned Interruptions
The Portuguese distribution network, comprising HV, MV In what concerns planned interruptions, since 2007 the
and LV, is operated by one large company supplying average number of interruptions experienced by customers is
approximately 6.1 million customers (99.5% of overall). The lower than 0.1 interruptions/year while in the case of planned
remaining 0.5% customers are supplied by 10 other small interruptions duration, average values do not exceed 2
companies operating exclusively in LV. minutes/year since 2008. The involved network operator
explains that such small number of planned interruptions is
The main characteristics of the distribution network at not the result of a reduction on predictive maintenance
2011 are presented in Table I and Table II. In HV, the grid is investment, clarifying that this good performance is due to the
operated at 60, 130 and 150 kV voltage levels and presents a systematic recourse to live working and the use of portable
high level of automation and self-restoration. In what concerns generators to supply customers that otherwise would be
the MY grid, the voltage levels in operation are 6, 10, 15 and interrupted.
30 kV, with a lower level of automation than in HV.
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600 330
307.3
It. Planned Interruptions - TIEPI MVREF+DV
300
500 o Unplanned Excl. Exceptional Events 263.0 o TIEPI MVREF
270
•
• Unplanned Incl. Exceptional Events 222.1
.. 240 - TlEPI MVREF-OV
� 400 • ..
•
t 210 o o o • Actual TIEPI MV
� 300
11
1;) 180
�
J!!
.3I/> 150
:>
c 200 J!! 118,1 113,5 113,8
� g 120 • • & 91.8 93.3 91,0
o
100
R2=O,7815 � 90 o
� & .!.
'.' o
.. 80,0
.£ '0
.. 60 'i'
30 55.8
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
o +---�--�--�
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Figure 2. Duration of planned and unplanned interruptions experienced by
LV customers.
Figure 4. Application of the incentive mechanism on continuity of supply.
.. Planned Interruptions In general, the results show that the implementation of the
o Unplanned Excl. Exceptional Events
incentive mechanism combined with the effort of the
• Unplanned Inc!. Exceptional Events
distribution company has contributed for the continuity of
supply performance improvement of the Portuguese network.
•
Since 2003, when the incentive mechanism was
• implemented, the company has received a reward in 4
o
different years, 2004, 2005, 2007 and 2011. On the other
hand, in 2006, 2009 and 2010, a continuity of supply
performance that deviated from the incentive mechanism
targets resulted in penalties payment. In the remaining years,
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 the performance was within the dead band and, as such, no
reward or penalty payments have occurred.
Figure 3. Number of planned and unplanned interruptions experienced by
LV customers. IV. COMPARISON WITH OTHER EUROPEAN COUNTRIES
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600
+/-50 Europe
500
�
.9
400
300
�
�
200
100
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
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300 450
+--1---r--+-�---+--+--+��--��-'�.�
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Figure 8, Duration of planned interruptions experienced by Portuguese and Figure 10, Duration of unplanned interruptions excluding exceptional events
European LV customers, experienced by Portuguese and European LV customers,
2,0
+/- SD Europe
1,8 +/- so Europe
1,6 �AverageEurope
�AverageEurope
�
1,4 ___ Portugal
� �Portugal
�
... 1,2
c
0
1,0
l 0,8
� 0,6
0,4 �-
-�----"--
-....
. _---
0,2
0,0 ��
+--+--��---r--r--+--+-����r4-r�
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Figure 9, Number of planned interruptions experienced by Portuguese and Figure I I, Number of of unplanned interruptions excluding exceptional
European LV customers, events experienced by Portuguese and European LV customers,
In both indicators, duration and number of interruptions, a uncontrollable and severe nature, result in very long
decreasing trend in the European average is observed for the interruptions. It is also observed that different countries are
period 1999-2010, Also the standard deviation band presents a responsible for the occurrence of exceptional events
tendency to become narrower in this period, which means that experienced each year. This is the case of Italy at 2003,
more countries present values closer to the average, Lithuania at 2005 and 2007 and, Spain and Lithuania at
20IO,Regarding the comparison between Portuguese and
In what concerns the Portuguese distribution network is
European performances, for the duration of unplanned
concerned, in spite of the convergence towards European
interruptions with origin in exceptional events a convergence
average observed, the number and duration of unplanned
trend is observed. However, for the number of interruptions, a
interruptions excluding exceptional events remain outside the
considerable gap still exists between Portugal and European
standard deviation band,
average that can be justified by different definitions of
D. Exceptional Events exceptional events adopted in each European country, as
discussed in [10] and [11].
The analysis of the Portuguese distribution network
performance has shown a considerable contribution of E. interruptions with origin in Distribution Networks
exceptional events for the continuity of supply indicators.
Planned and unplanned interruptions with origin in
Therefore, in order to compare the Portuguese and European
distribution networks, excluding exceptional events, are the
realities, their respective duration and number of unplanned
responsibility of the network operators. In this sense, a
interruptions with origin in exceptional events are presented in
different utilities comparison on continuity of supply
Fig. 12 and Fig. 13,
performance, as presented in Fig. 14 and Fig. 15, should
The number and duration of interruptions with origin in include interruptions with the origin in their networks.
exceptional events in European countries are in line with the
The results show a trend of decreasing the duration of
expectations for such continuity of supply indicators, Thus, a
interruptions in the European average. This is not the case in
reduced number of interruptions are observed that, due to their
the number of interruptions, which presents some stability.
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200 600
�
� 80
�
� 200
60
40
100
20
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Figure 12. Duration of unplanned interruptions with origin in exceptional Figure 14. Duration of planned and unplanned interruptions excluding
events experienced by Portuguese and European LV customers. exceptional events experienced by Portuguese and European LV customers.
3,0
+/-50 Europe
+/- SD Europe
2,5 �AverageEurope
...... AverageEurope
�Portugal
�
2,0 � �Portugal
� �
c. 5
�
c.
f
� 1,5
0
I 1,0 �
0,5
. .---.... .�
0,0 +-->----+---+-->---<
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Figure 13. Number of unplanned interruptions with origin in exceptional Figure 15. Number of planned and unplanned interruptions excluding
events experienced by Portuguese and European LV customers, exceptional events experienced by Portuguese and European LV customers,
Regarding the Portuguese distribution network respectively, while cluster B comprises, from the remaining
performance, a considerable convergence toward European countries, those with similarities to Portugal, such as a
average duration of interruptions is observed since 2004, In percentage of underground cables between 10% and 40% in
2009 and 2010, in spite of performance deterioration, the MV network and between 20% and 40% in the LV network.
duration of interruptions is still within the standard deviation Furthermore, in cluster B only countries involved in the fourth
band. However, in what concerns the number of interruptions, edition of the CEER Benchmarking Report are included.
in spite of the convergence observed in the last 10 years, a
The average duration and number of overall interruptions
potential for improvements is identified,
experienced by LV customers from some of the clusters
V, CLUSTERlNG EUROPEAN COUNTRlES ACCORDlNG TO defined are presented in Fig. 17 and Fig. 18,
THE NETWORK TECHNICAL CHARACTERISTICS 100
weden
•
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600 during the last 10 years. When compared to the average of the
�AverageEurope CEER countries, in what concerns planned interruptions, the
500
_Portugal Portuguese network presents one of the best European
M
� -i:r-ClusterB
performances. On the other hand, for the unplanned
i 400
interruptions a considerable potential for improvements in the
-o-Cluster A
.9 Portuguese network was identified.
QJ 300
,
o
A particular attention was also given to the unplanned
:1
200 I interruptions with origin on exceptional events. It was
I
� I observed that in Portugal these events frequently account for
, � I
100
'0-/ .... '0--0. .... -.6
"
'0--0_-0 more than 20% of the number and duration of unplanned
interruptions. These results suggest that a greater
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
harmonization between Portugal and the other European
countries should be carried out.
Figure 17. Duration of overall (planned and unplanned) interruptions
experienced by LV customers from the different clusters. Finally, it was also concluded that a comprehensive
benchmarking should take into account the different technical
characteristics of the networks and clustering countries
�AverageEurope according to the percentage of underground cables in MV and
_Portugal LV could be a good approach to achieve that.
-i:r- Cluster B
-0- Cluster A
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