Below the tip of the iceberg: network-reliability model enables united utilities to evaluate the impact of possible system improvements

摘要

How does an industry regulator measure and regulate the performance of a distribution company? For U.K. regulator Ofgem, the answer is to monitor the quality of supply and quality of service, and then adjust the level of regulated income accordingly. Following the 1999 Price Review, failure to achieve performance levels resulted in reductions of up to 0.5% in allowed regulated income for the following five-year period, with increases of a similar magnitude for companies achieving or exceeding targets. From April 2002, Ofgem is able to penalize companies by up to 2%-some ￡50 million (USD78.9 million) per year for the industry-for failing to meet the required levels of performance. Ofgem could raise this figure further starting in April 2005.