Electricity quality of service regulation in italy
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ELECTRICITY QUALITY OF SERVICE REGULATION IN ITALY. Ferruccio Villa Quality and Consumer affair Department Head of Electricity Quality of Supply Head of Electricity and Gas Smart Metering [email protected] Study visit of FTS Milan, 4 March 2010. AGENDA.

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Electricity quality of service regulation in italy

ELECTRICITY QUALITY OF SERVICE REGULATION IN ITALY

Ferruccio Villa

Quality and Consumer affair Department

Head of Electricity Quality of Supply

Head of Electricity and Gas Smart Metering

[email protected]

Study visit of FTS

Milan, 4 March 2010

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Agenda

AGENDA

  • Overview on the electricity quality of service regulation

  • Short overview on the electricity and gas smart metering regulation

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Legal and regulatory framework regulatory authority s legal powers

LEGAL AND REGULATORY FRAMEWORKRegulatory Authority’s legal powers

AUTOMATIC COMPENSATIONS IN CASE OF STANDARD NON-FULFILLMENT

Art. 2(12) para. g)

QUALITY-TARIFF LINK

Art. 2(19) para. a) Art. 2(12) para. e)

SANCTIONS IN CASE OF MISRESPECT OF REGULATORY ORDERS

Art. 2(20) para. c)

Regulatory Authority

QUALITY STANDARDS(guaranteed/overall)and DIRECTIVES

Art. 2(12) para. h)

(vs. customers)

(vs. utilities)

PROPOSALS FOR LICENSING

Art. 2(12) para. b) and o)

(vs. licensing admin.)


Legal and regulatory framework guaranteed and overall standards

LEGAL AND REGULATORY FRAMEWORKGuaranteed and overall standards

  • The law foresees two types of quality standards

    • Guaranteed standards (GS): have the function of ensuring that all consumers receive a minimum quality leveland therefore are oriented to the protection of (worst-served) customers through compensations;

    • Overall standards (OS):have the function to monitor the company performance at system leveland therefore are oriented to promoting improvement through incentive/penalties schemes

  • It’s up to the Authority to choosewhich type of standard apply to different quality issues

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Legal and regulatory framework guaranteed and overall standards1

LEGAL AND REGULATORY FRAMEWORKGuaranteed and overall standards

  • Guaranteed Standards

    • referred to each single transaction between customer and utility

    • detailed knowledge of the company performance, down to individual customer level (detailed measurements are needed)

    • Guaranteed standard = minimum quality

      • CQ: maximum time to connect the customer with simple work

      • CS: maximum number of interruptions per year that affect the single customer

  • Overall Standards

    • referred to the average performance of the utility in a given area

    • monitoring function through periodic publication of results (might affect the reputation of the company, if not its financial results)

    • Overall standard = average quality (or quality at a given percentile)

      • CQ: at least 90% of customer’s claims answered within the maximum time for substantial reply

      • CS: maximum number of interruptions per year per customer (average in a given area)

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Service quality regulation means multidimensional output regulation

SERVICE QUALITY REGULATION MEANS MULTIDIMENSIONAL OUTPUT REGULATION

SUPPLY

  • CALL CENTERS

  • BILLING

  • APPOINTMENTS

  • RICONNECTIONS AFTER NON-PAYMENT DISCONNECTIONS

  • READING

  • COMPLAINTS

  • NEW SUPPLY ESTIMATES

  • CONNECTIONS TO NETWORK

  • PROVIDING SUPPLY

  • METER INVESTIGATIONS

COMMERCIAL QUALITY

ELECTRICITY

SERVICE

GENERATION,

TRANSMISSION AND

DISTRIBUTION

  • UNPLANNED SUPPLY INTERRUPTIONS (LONG AND SHORT)

  • PLANNED (NOTIFIED) SUPPLY INTERRUPTIONS

CONTINUITYOF SUPPLY

  • VOLTAGE INVESTIGATIONS

  • VOLTAGE VARIATIONS

  • VOLTAGE DIPS / SWELLS

  • RAPID VOLTAGE CHANGES

  • FLICKER

  • HARMONICS

  • UNBALANCE

VOLTAGE QUALITY

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Objectives of service quality regulation

OBJECTIVES OF SERVICE QUALITY REGULATION

MAKE INFORMATION AVAILABLE

PROTECT WORST-SERVED CUSTOMERS

PROMOTE QUALITY IMPROVEMENT

FAVOUR AND TEST MARKET MECHANISMS

INCENTIVE QUALITY REGULATION (P.B.R.)

PREREQUISITE

COMPETITION

REGULATION OF QUALITY

  • SET RELIABLE MEASUREMENT RULES FOR QUALITY FACTORS

  • PUBLISH ACTUAL QUALITY LEVELS

  • SET AND MAINTAIN GUARANTEED QUALITY STANDARDS

  • DETERMINE INDIVIDUAL COMPENSATIONS FOR STANDARD MISMATCHING

  • SET AND MAINTAIN OVERALL QUALITY STANDARDS

  • LINK QUALITY AND REVENUES (TARIFFS)

  • PREFER CUSTOMER CHOICE WHENEVER POSSIBLE AND SAFE

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A conceptual map for service quality regulation

A CONCEPTUAL MAP FOR SERVICE QUALITY REGULATION

Powerqualitycontracts

Regulatorymeasurement guidance

Publicationactual quality levels

Multiple/Very long interruption standards

Guaranteedquality standards

Volt.Qual.Monitoring systems

Telephoneresponse incentives

Incentiveand penalty mechanism

Volt.Qual.minimum standards

MAKE INFORMATION AVAILABLE

PROTECT WORST-SERVED CUSTOMERS

PROMOTE QUALITY IMPROVEMENT

FAVOUR AND TEST MARKET MECHANISMS

COMMERCIAL QUALITY

CONTINUITY OF SUPPLY

VOLTAGE QUALITY

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Monitoring continuity of supply distribution

MONITORING CONTINUITY OF SUPPLYDISTRIBUTION

Powerqualitycontracts

Regulatorymeasurement guidance

Publicationactual quality levels

Multiple/Very long interruption standards

Guaranteedquality standards

Volt.Qual.Monitoring systems

Telephoneresponse incentives

Incentiveand penalty mechanism

Volt.Qual.minimum standards

MAKE INFORMATION AVAILABLE

PROTECT WORST-SERVED CUSTOMERS

PROMOTE QUALITY IMPROVEMENT

FAVOUR AND TEST MARKET MECHANISMS

COMMERCIAL QUALITY

CONTINUITY OF SUPPLY

VOLTAGE QUALITY

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Regulatory measurement guidance continuity of supply basic concepts

Regulatory measurement guidance:Continuity of supply - basic concepts

  • Territorial classification of affected customers

  • LV customers involved in interruptions

  • The telecontrol system

  • The interruption register

  • Force majeure

  • How continuity is measured

  • Who measures continuity

  • Audits on continuity data

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Electricity quality of service regulation in italy

TERRITORIAL CLASSIFICATION OF AFFECTED CUSTOMERS

  • A territorial classification is needed in order to set separate and acceptable standards

  • Italian classification

    • Urban (“high density”) areas: territory of municipalities with more than 50,000 inhabitants

    • Sub-urban (“medium density”) areas: territory of municipalities with more than 5,000 and less than 50,000 inhabitants

    • Rural (“low density”) areas: territory of municipalities with less than 5,000 inhabitants

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Electricity quality of service regulation in italy

LV CUSTOMERS INVOLVED IN INTERRUPT.

Until 2007: estimation

  • Interruptions due to faults at HV or MV level:

    Estimate of number of LV users involved = MV/LV transf. involved * ratio of LV users per MV/LV transf.

    (calculated separately for each district level)

  • Interruptions due to faults at LV level:

    Estimate of number of LV users involved = LV lines involved * ratio LV users per LV line

    (calculated separately for each district level)

As from 2008: actual number

  • Through information systems (e.g.: SCADA, GIS, etc.)

  • Through smart metering systems (financial incentive; in this case the registration of the actual number of LV customers has been postponed to 2010)

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Electricity quality of service regulation in italy

THE TELECONTROL SYSTEM

  • The Italian continuity of supply regulation sets a minimum requirement about telecontrol system (HV and LV level)

    • Every event of opening and closure of breaker (at HV or MV level, >1 kV) must be automatically detected and recorded

    • There must be an automatic printing of all events on the grid

    • The telecontrol system must be able to control at least the HV and MV circuits at the terminals of each HV/MV, MV/MV transformer stations and MV switching stations or interconnection station with other DISCOs

  • For faults on LV networks only manual registration is required but all the telephone calls must be reported in written in a separate register

    • in order to verify that crews have been engaged after all telephone calls for repairing the fault

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Electricity quality of service regulation in italy

Example: telecontrol system in a network

HV/MV station

HV/MV station

MV/LV substations

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Electricity quality of service regulation in italy

Example: telecontrol system in a network

Breakersthat must be remotely controlled

HV/MV station

HV/MV station

MV/LV substations

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The interruption register

THE INTERRUPTION REGISTER

  • For each interruption, the distribution company must record the following data in the “interruption register”

    • Type of interruption (long/short/transient)

    • Starting time (see also telecontrol system)

    • Number of customer affected

    • Duration (for each group of customers with same duration)

    • Voltage level (T, HV, MV, LV)

    • Code of the affected circuits

    • Cause (force majeure, external damages, other)

    • Specific documentation if cause = F.M. or EXT.DAM.

    • Specific documentation if interruption notified

  • At the end of the year, an electronic copy of the register in sent via e-mail to the regulatory authority

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Electricity quality of service regulation in italy

FORCE MAJEURESimplification process

  • 1st Regulatory Period (2000-2003)

    • Only documental evidence

  • 2nd Regulatory Period (2004-2007)

    • Choice between documental evidence and statistical alghoritm (Major Event Days)

  • 3rd Regulatory Period (2008-2011)

    • Only statistical alghoritm(Exceptional Condition Periods) + possibility of documental evidence for few specific cases

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How continuity is measured

HOW CONTINUITY IS MEASURED

  • Interruptions are described through

    • Timebetween events or numberof interruptions (for eachtype) in a period of time (in general, 1 year) and in a given distributionterritory(homogenous!) of N customers

      • SAIFI: average number of long interruptions per customer per year (MAIFI for short interr.)

      • SAIDI: average duration of interruption per customer per year

    • Per each interruption of the same type, maincharacteristicsto be recorded are

      • Customers affected (involved) Ni  SAIFI, SAIDI

      • Duration (time of start & finish) Di SAIDI

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Who measures continuity

WHO MEASURES CONTINUITY

  • Distribution company

    • Remote control system (SCADA): allows automatic registrationof each interruptions starting time and each breaker operation

      • Italy: compulsory on each HV circuit and each MV circuit

    • Interruption register: contain all data requested for each interruption(manually updated)

      • Italy: compulsory for each long and short interruption; users can have access to the register

  • Regulatory Authority

    • Is provided each year with yearly continuity indicators and an electronic copy of the register and makes audits

      • Italy: per each territorial district (~300): SAIDI, SAIFI, MAIFI, separately for: planned and unplanned interruption, causes of interruption, voltage quality level, territorial density

  • Customers: individual information for major ones

    • Italy: customer can ask for individual measurement

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Example of continuity yearly data provided to the authority enforced from 1999

EXAMPLE OF CONTINUITY YEARLY DATA PROVIDED TO THE AUTHORITY(enforced from 1999)

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Audits on continuity data steps for audit evaluation

AUDITS ON CONTINUITY DATA Steps for audit evaluation

  • Planning

    • Choice of the telecontrol centre/districts to be audited

    • Preparation of “check-list”, according to specific situations

  • Formal decision

    • Regulatory order issued by the Authority and published in the internet website without names of the selected companies

  • One week in advance: announcement

    • The Operator is informed about the documentation it has to make ready and the date/place of the audit

  • During the audit:

    • Filling the check-listregarding operator business administration, procedures of interruptions management, telecontrol system …)

    • Random sampling interruptions to be checked

    • Final minutes of the audit operation

  • After the audit:

    -Report of the audit cointaining calculation of 3 indexes (accuracy, correctness, registration system), communicated to the company

    • final deliberationfor approving or rejecting (after formal contraddittorio) on the basis of indexes results

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Electricity quality of service regulation in italy

ASM Bressanone

BZ

APB Brunico

AE-EWBolzano

BL

SO

PN

AGS Riva del Garda

TN

VB

UD

LC

ASM Rovereto

GO

VA

VI

CO

BG

TV - A

DEVAL AO

TV - B

TV - M

AUDITS BY AEEG

ON CONTINUITY

DATA

BS

AIM Vicenza

VE - B

AcegasTrieste

BI

VE - A

NO

TS

ASM Brescia

AMPS Seregno

MI

VR

Milano AEM

VE - M

VC

AGSM Verona

PD

CR

Atena Vercelli

LO

AEM Cremona

TO

MN

PV

ASM Voghera

Torino AEM

RO

AS

PC

AL

PR

FE

RE

AMPS Parma

CN

CN

GE - M

MO

BO

RA

GE - A

GE - B

SV

META Modena

AMI Imola

MS

SP

AMAIESan Remo

FO

IM

LU

PT

PO

RN

FI

PS

AN

AR

PI

SI

LI

MC

PG

AP

GR

TR

TE - B

TE - M

ASM Terni

VT

PE

RI

CH

RM - M

AQ

Legenda

Zecca Ortona

RM - A

RM -B

Roma Acea

CB

IS

FR

FG

LT

CE

BN

1998-99

SS

BA

AV

AMET Trani

NA - A

NA - M

2000

NU - M

NA - B

Sippic Capri

PZ

BR

TA - A

TA - M

MT

OR

SA

NU - B

NU - B

2001

TA - B

LE

CA

2002

CS

2003

KR

2004

CZ

2005

VV

2006

RC

ME

Cefalù Enel

Cefalù non Enel

PA - B

PA - M

TP

PA - A

CT

EN

AG

CL

SR- B

RG - A

SR- A

RG - M

SR- M

RG - B

AUDITS ON CONTINUITY DATA

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Incentive regulation distribution

INCENTIVE REGULATIONDISTRIBUTION

Multiple/Very long interruption standards

Powerqualitycontracts

Regulatorymeasurement guidance

Publicationactual quality levels

Incentiveand penalty mechanism

Volt.Qual.Monitoring systems

Telephoneresponse incentives

Guaranteedquality standards

Volt.Qual.minimum standards

MAKE INFORMATION AVAILABLE

PROTECT WORST-SERVED CUSTOMERS

PROMOTE QUALITY IMPROVEMENT

FAVOUR AND TEST MARKET MECHANISMS

COMMERCIAL QUALITY

CONTINUITY OF SUPPLY

VOLTAGE QUALITY

SAIDI: as from 2000

SAIFI+MAIFI: as from 2008

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Conditions for successful service quality regulation

CONDITIONS FOR SUCCESSFUL SERVICE QUALITY REGULATION

  • Adjust regulatory scheme objectives to account for specific factors

  • Keep the scheme as simplest as possible in order to give companies right signals for investments

  • Quality regulation is never a permanent solution: periodic evaluation and revision

  • Quality regulation greatly benefits from a gradual approach to the implementation process

  • An open dialogue across all interested parties is a fundamental part of an efficient regulation

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1 adjust regulatory scheme objectives to account for specific factors

1. ADJUST REGULATORY SCHEME OBJECTIVES TO ACCOUNT FOR SPECIFIC FACTORS

  • Gap between level of continuity in Italy and other major EU countries (FR, UK, DE)

    • OBJECTIVE A: improve the Italian average level of continuity towards European benchmarks

  • Gaps between Northern and Southern regions

    • OBJECTIVE B: reduce variation of regional and district levels around the country average level

  • Liberalisation and privatisation processes

    • OBJECTIVE C: Increase network investments for maintaining good levels (if achieved) or for improvement

    • OBJECTIVE D: Ensure customer satisfaction for electrical service

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2 scheme as simplest as possible i

2. SCHEME AS SIMPLEST AS POSSIBLE /i

REGULATION (once every 4 years) SETTING STANDARDS FOR IMPROVEMENT AND SETTING REWARD/PENALTIES PARAMETERS

  • Ex-ante for 4 years

  • Reference to long-term objectives

  • Improvement baseline

  • Reward/penalty parameters (based on WTP customer survey)

IMPLEMENTATION AND CONTROL (every year)COMPARING ACTUAL LEVELS WITH STANDARDS AND APPLY FORMULA FOR ACTUAL REWARDS AND PENALTIES

  • Each year t, companies are rewarded or penalised according to their performance

  • Tariff is consequently adjusted

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2 scheme as simplest as possible ii

2. SCHEME AS SIMPLEST AS POSSIBLE /ii

Stdt [CML-SAIDInet]

LivPart

LivObk

t

0 1 2 3 4 … … … 12

REGULATION (once every 4 years) SETTING STANDARDS FOR IMPROVEMENT

  • Ex-ante for 4 years

  • Reference to long-term objectives

  • For each district a given improvement is required year by year (each company must improve a% each year in each district)

j: Territ. District (1..300)k: Territ. Density (High/Medium/Low)t: year (regulatory period: 4 years)

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2 scheme as simplest as possible iii

2. SCHEME AS SIMPLEST AS POSSIBLE /iii

Unitary incentive/penalty ex-ante [€/kWh-not-served]based on WTP/WTA survey

IMPLEMENTATION AND CONTROL (every year)COMPARING ACTUAL LEVELS WITH STANDARDS AND APPLY FORMULA FOR ACTUAL REWARDS AND PENALTIES

  • Each year t, companies are rewarded or penalised according to their performance Actj,t (unitary reward/penalty parameters are set ex-ante at the beginning of the regulatory period)

  • Tariff is adjusted yearly: ±qt = Qt /allow.revenues [%]

  • Reward and penalties are capped

Qt [€]

+Max

Actt [CML]

Stdt

-Min

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Electricity quality of service regulation in italy

2. SCHEME AS SIMPLEST AS POSSIBLE /iv

UNITARY INCENTIVE/PENALTY PARAMETERS used in the second regulatory period (2004-07)

national reference (SAIDI-net):urban 25min/cust/year, rural 60min/cust/year

For further details: Bertazzi, Fumagalli, Lo Schiavo,CIRED (2005) paper n. 300

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Electricity quality of service regulation in italy

Example: URBAN AREAS

90

90

)

)

1° REGULATORY PERIOD

1° REGULATORY PERIOD

80

80

70

70

2° REGULATORY PERIOD

2° REGULATORY PERIOD

60

60

interruptions not attributable to distribution companies

interruptions not attributable to distribution companies

50

50

CUSTOMER MINIUTES LOST

CUSTOMER MINIUTES LOST

40

40

30

30

20

20

Reference standards

Reference

Reference

10

10

(net of

(net of

standards

standards

0

0

1998/99

1998/99

1999/00

1999/00

2000/01

2000/01

2001/02

2001/02

2002/03

2002/03

2003/04

2003/04

2004/05

2004/05

2005/06

2005/06

2006/07

2006/07

0

0

1

1

2

2

3

3

4

4

5

5

6

6

7

7

8

8

9

9

REFERENCE STANDARDS

REFERENCE STANDARDS

TARGETS

TARGETS

ACTUAL LEVELS

ACTUAL LEVELS

2. SCHEME AS SIMPLEST AS POSSIBLE /v

INCENTIVE REGULATION ADJUSTMENT FROM 1ST TO 2ND REGULATORY PERIOD

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Electricity quality of service regulation in italy

3. PERIODIC EVALUATION OF EFFECTS /iObjective A Improve overall continuity level for Italy

SAIDI - 1998-2008 (excluded load shedding and big incidents on the Transmission network)

AVERAGE EXTRA-PRICE FOR CUSTOMERS 2000-2003: ABOUT 3 €/CUSTOMER/YEAR2004-2007: ABOUT 4 €/CUSTOMER/YEAR

Interruptions out of DSOs responsibilities

Interruptions due to DSOs responsibilities

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Electricity quality of service regulation in italy

3. PERIODIC EVALUATION OF EFFECTS /iiObjective A Improve overall continuity level for Italy

SAIDI - 1998-2008 (only interruptions due to DSOs responsibilities)

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Electricity quality of service regulation in italy

3. PERIODIC EVALUATION OF EFFECTS /iiiObjective A Improve overall continuity level for Italy

SAIFI - 1998-2008 (excluded load shedding and big incidents on the Transmission network)

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Electricity quality of service regulation in italy

3. PERIODIC EVALUATION OF EFFECTS /ivObjective B Close the gaps between North and South

SAIDI - 1998-2008 (excluded load shedding and big incidents on the Transmission network)

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3 periodic evaluation of effects v objective c improve network investments

3. PERIODIC EVALUATION OF EFFECTS /vObjective C Improve network investments

Investments for quality (dedicated) source: Enel response to AEEG consultation paper (2003)

Effects of regulatory incentive scheme for continuity of supply

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3 periodic evaluation of effects vi objective d ensure customer satisfaction

3. PERIODIC EVALUATION OF EFFECTS /viObjective D Ensure customer satisfaction

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Electricity quality of service regulation in italy

4. GRADUAL APPROACH: EVOLUTION

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5 open dialogue multiple consultation

5. OPEN DIALOGUE: MULTIPLE CONSULTATION

Jun-03

Jul-03

Nov-03

Jan-04

Jan-04

Jan-04

4.

3rd

CONSULTAT.

PAPER

1.

1st

CONSULTAT.

PAPER

2.

PUBLIC

HEARINGS

3.

2nd

CONSULTAT.

PAPER

5.

PUBLIC

HEARINGS

D. 4/04

QUALITY

CODE

2004-07

  • Includes both continuity and service quality

  • Technical report with first impact analysis

  • Quantitative assessment of effects of 1st regulatory period

  • Objectives for 2nd regulatory period

  • Alternatives

  • Views invited on issues

  • Draft legal text (“ordinance”)

  • Further alternatives taking into account comments

  • Range of values for mainparameters

  • Stressed objective of convergence

  • Further alternatives taking into account comments

  • Range of values for mainparameters

From 2007: RIA (Regulatory Impact Assessment)

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Electricity quality of service regulation in italy

EUROPE, DURATION OF INTERRUPTIONS(EXCEPTIONAL EVENTS ARE EXCLUDED)

Source: CEER, 4th Benchmarking Report, 2008.

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Electricity quality of service regulation in italy

EUROPE, NUMBER OF LONG INTERRUPTIONS(EXCEPTIONAL EVENTS ARE EXCLUDED)

Fonte: CEER, 4th Benchmarking Report, 2008.

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Guaranteed standards distribution

GUARANTEED STANDARDSDISTRIBUTION

Powerqualitycontracts

Regulatorymeasurement guidance

Publicationactual quality levels

Multiple/Very longinterruption standard

Guaranteedquality standards

Volt.Qual.Monitoring systems

Telephoneresponse incentives

Incentiveand penalty mechanism

Volt.Qual.minimum standards

MAKE INFORMATION AVAILABLE

PROTECT WORST-SERVED CUSTOMERS

PROMOTE QUALITY IMPROVEMENT

FAVOUR AND TEST MARKET MECHANISMS

COMMERCIAL QUALITY

CONTINUITY OF SUPPLY

VOLTAGE QUALITY

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Electricity quality of service regulation in italy

MULTIPLE INTERRUPTIONS /I

  • For MV customers

  • Maximum number of long interruptions in a solar year are concerned

  • Guaranteed stds:

  • MV customers have right to automatic compensations if their plants/protection relays guarantee selectivity with protection relays of the DNO (through written declaration to the DNO, according to DNO’s specifications – exemption for new customer plants)

  • MV customers who do not send the declaration to the DNO pay an extra tariff component

  • Interruptions due to FM and third party damages are excluded

  • Upstream interconnected DNOs (or TSO) must contribute to automatic compensations to customers proportionally to the number of long interruptions of their responsibilities that involve downstream interconnected DNOs

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Electricity quality of service regulation in italy

MULTIPLE INTERRUPTIONS /IIWorst served customers

  • Distribution by Italian region (2006-2008)

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Electricity quality of service regulation in italy

MULTIPLE LONG INTERRUPTIONS Standards in force in Europe

Source: CEER, 3rd Benchmarking Report on Electricity Quality of Supply, 2005. Updates for Spain and Italy

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Electricity quality of service regulation in italy

VERY LONG INTERRUPTIONS /IStandards

  • Guaranteed standards are applicable to both normal and exceptional events

  • Statistical method for identifying “Exceptional Condition periods” (can be integrated with documental evidence for few specific cases)

  • Suspension of clock for safety issues

  • Company must pay guaranteed standards

  • In case of major or exceptional events, companies are compensated through a dedicated fund

  • All customers put a little money in the fund

  • Companies are incentivised in order to improve their performance in “normal conditions”

    • Companies must put money in the Fund according to their actual quality net of major and exceptional events

    • Companies receive a sum that is proportional to the expected quality (decreasing over time)

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Very long interruptions ii automatic reimbursements

VERY LONG INTERRUPTIONS /IIAutomatic reimbursements

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Electricity quality of service regulation in italy

VERY LONG INTERRUPTIONS /III

  • 2003:Blackout for transmission/dispatching problems (lost interconnections with abroad during night)

    • 33M customers affected (only Sardinia at safe), up to 24 hours (Sicily)

  • 2004: Large interruptions in some regions due to exceptional severe weather.

    • More than 2 M customers involved in 4 large events (7 regions);

    • Around 400.00 customers interrupted for more than 12 hours

    • Around 50.000 cust. for more than 2 days (up to 5 days, 2.000 cust.)

  • 2005: First round of consultation

  • 2006: Second round of consultation

  • 2007: Third round of consultation and final decision (July)

  • 2008: Implementation time

  • 2009 1st July new standards for all MV-LV customers in case of very long interruptions with automatic compensations

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Electricity quality of service regulation in italy

VERY LONG INTERRUPTIONS Standards in force in Europe

Source: CEER, 3rd Benchmarking Report on Electricity Quality of Supply, 2005. Updates for Spain and Italy

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Commercial quality distribution

COMMERCIAL QUALITYDISTRIBUTION

Powerqualitycontracts

Regulatorymeasurement guidance

Publicationactual quality levels

Multiple/Very longinterruption standard

Guaranteedquality standards

Volt.Qual.Monitoring systems

Telephoneresponse incentives

Incentiveand penalty mechanism

Volt.Qual.minimum standards

MAKE INFORMATION AVAILABLE

PROTECT WORST-SERVED CUSTOMERS

PROMOTE QUALITY IMPROVEMENT

FAVOUR AND TEST MARKET MECHANISMS

COMMERCIAL QUALITY

CONTINUITY OF SUPPLY

VOLTAGE QUALITY

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Electricity quality of service regulation in italy

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Service quality regulation comparison between before and after authority s regulation

SERVICE QUALITY REGULATIONcomparison between before and after Authority’s regulation

Self-regulation

Regulation issued by the Authority

2000

1997

II° sem.

1998

1999

2001

2002

2003

2004

2005

2006

Number of requests

with not fulfilled

6.099

4.167

8.418

7.902

25.650

61.881

67.344

57.424

64.696

73.867

guaranteed standards

Actually paid

Compensation

21

54

22

4.771

12.437

52.229

79.072

48.305

63.822

73.714

payments

Total amount

Actually paid

For compensations

0,001

0,002

0,001

0,22

0,82

3,11

4,21

3,41

4,43

4,07

Euro Millions

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Service quality regulation effects of guaranteed standards 2006

SERVICE QUALITY REGULATIONEffects of guaranteed standards (2006)

2006 RESULTS

Number

Average

Number of

SERVICES SUBJECT TO GUARANTEED STANDARDS

% Stds not

of requests

Time (net)

automatic

fulfilled

compensat.

Standard

per year

w.d.

328.637

2,8%

13,08

8.434

ESTIMATE CHARGES (for work on the LV network)

20 working days

15 working days

419.042

2,4%

8,77

9.688

COMPLETE SIMPLE WORKS (net of authorization)

5 working days

1.702.260

1,0%

1,97

16.653

START THE SUPPLY

5 working days

826.458

0,5%

1,58

3.144

TERMINTE THE SUPPLY (on customer’s request)

1 days

863.530

3,6%

0,51

32.361

RESTART AFTER NON-PAYMENT DISCONNECTION

90 days

11.453

7,1%

46,65

515

CORRECT BILLING PROBLEMS (already paid sums)

3 hours (daytime)4 hours (night)

130.461

1,7%

1,71

2.501

SOLVING METERING FAULTS (with service interruptions)

3 hours

52.674

0,7%

259

KEEPING APPOINTMENTS (punctuality band hours)

w.d.: working days

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Electricity quality of service regulation in italy

AUTOMATIC COMPENSATIONS

Amounts and exemptions

  • Exemptions

    • Force majeure and third party action (to be adequately proven)

    • In cases where the customer is not up to date with payments owed to the operator.

    • Concerning “maximum time for restoration of supply following a failure of the metering device “ the operator shall not be required to pay the compensation if the interruption of supply is caused:

    • by release of lock cable terminals;

    • by intervention of the load limiter due to overconsumption;

    • by damages caused to the metering device when installed in rooms where only the customer can have admittance.

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Electricity quality of service regulation in italy

AUTOMATIC COMPENSATION

Escalation in case of delayed execution

Euros

AC= automaticcompensation

3*AC

2*AC

AC

0=Rqst

S=Std

2*S

3*S

days

A=Act

A=Act

A=Act

Automatic compensation to be paid within 90 days (from A)

Date (or hour) A when the service is actually done by the operator is beyond standard S

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Overall standards distribution 2008 2011

OVERALL STANDARDSDISTRIBUTION (2008-2011)

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Information to customer

INFORMATION TO CUSTOMER

Powerqualitycontracts

Regulatorymeasurement guidance

Publicationactual quality levels

Multiple/Very longinterruption standard

Guaranteedquality standards

Volt.Qual.Monitoring systems

Telephoneresponse incentives

Incentiveand penalty mechanism

Volt.Qual.minimum standards

MAKE INFORMATION AVAILABLE

PROTECT WORST-SERVED CUSTOMERS

PROMOTE QUALITY IMPROVEMENT

FAVOUR AND TEST MARKET MECHANISMS

COMMERCIAL QUALITY

CONTINUITY OF SUPPLY

VOLTAGE QUALITY

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Customer information

CUSTOMER INFORMATION

  • Guaranteed Standards and automatic compensationsneed to be adequately communicated to the customers

    • At the request the customer is informed of his right to receive compensations (for commercial quality)

    • If the standard is not fulfilled, the customer receive compensation through the bill with a given message

    • Customers can claim for further damages if they are able to prove it (ordinary jurisdiction, long times and difficulty to prove)

  • Further communication tools:

    • Publication of data on the internet website of the Authority

    • “Interruption bill” for each MV customer, once per year (end-June)

    • Campaign for convincing MV customers to invest in improving their installations and obtain the benefits of multiple interruption regulation

    • Investigations in case of large events and publication of results (for instance for 2003 blackout)

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Electricity quality of service regulation in italy

Type of standard

guaranteed

Service

Execution of simple works (*)

Territory

Italy

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Electricity quality of service regulation in italy

Type of interruptions selected

Long unplanned

Territory Selected

Italy

Responsibilities selected

All (overall CML, net of blackout and load shedding)

Indicator Selected

CML

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Incentive regulation transmission

INCENTIVE REGULATIONTRANSMISSION

Powerqualitycontracts

Regulatorymeasurement guidance

Publicationactual quality levels

Multiple/Very longinterruption standard

Guaranteedquality standards

Volt.Qual.Monitoring systems

Telephoneresponse incentives

Incentiveand penalty mechanism

Volt.Qual.minimum standards

MAKE INFORMATION AVAILABLE

PROTECT WORST-SERVED CUSTOMERS

PROMOTE QUALITY IMPROVEMENT

FAVOUR AND TEST MARKET MECHANISMS

COMMERCIAL QUALITY

CONTINUITY OF SUPPLY

VOLTAGE QUALITY

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Background monitoring of transmission continuity 1

BACKGROUND MONITORING OF TRANSMISSION CONTINUITY (1)

  • Three years before the transmission continuity regulation, Regulatory Order 250/04 about the preparation of Grid Code was issued by AEEG:

    • Obligation TSO to register long (> 3 minutes), short and transient (< 1 second) interruptions

    • Classification of interruptions: origin + cause + list of curtailed users + grid status at time=0 + data per each interrupted user (start time, finish time, load shedding)

    • Definition of continuity indicators and calculation methods: ENS, AIT, SAIFI (long interruptions), MAIFI (short) and energy not retired

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Background monitoring of transmission continuity 2

BACKGROUND MONITORING OF TRANSMISSION CONTINUITY (2)

  • … (cont’d)

  • Monitoring of voltage quality parameters: supply voltage variations, rapid voltage changes, voltage dips, overvoltages, flicker, harmonic distortion, voltage unbalance, frequency deviations

  • Commitment of the TSO on expected quality levels for transmission service (proposed by TSO itself for regulatory approval), referred to continuity indicators

  • Publication of a TSO yearly report describing actual performance vs. expected levels, and actions and plans for improvement of continuity indicators

  • Reporting by TSO to Authority on transmission major incidents (ENS > 150 MWh, > 30 minutes)

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Background monitoring of transmission continuity 3

BACKGROUND MONITORING OF TRANSMISSION CONTINUITY (3)

  • The provisional approach of 250/04 provided for:

    • Transparency on quality issues

    • Reputational incentive to the TSO

    • Robust continuity measurement rules and data

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Data by Terna and AEEG


Italian incentive regulation of transmission continuity objectives

ITALIAN INCENTIVE REGULATION OF TRANSMISSION CONTINUITY: OBJECTIVES

  • Reduction of ordinary outages

  • Prevention and mitigation of major incidents

  • Implicit objective: provide signals for investments justified by quality and security reasons to avoid the risk of solely market-based investments exclusively targeted to reduction of congestion

Transmission investments 1963-2008 Source: own elaboration of public data

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Italian incentive regulation of transmission continuity indicators

ITALIAN INCENTIVE REGULATION OF TRANSMISSION CONTINUITY: INDICATORS

  • Three indicators (energy not supplied, number of interruptions per user and number of users without interruptions)

  • R-ENS, Regulated Energy Not Supplied

  • NIU, Number of Interruptions per grid User

  • UZI, number of grid Users with Zero Interruptions

  • Regulation in force as from 2008.

  • Set improvement standards and reward/penalties parameters for 2008-2011.

  • Economic effects only for 2010 and 2011

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Regulation of transmission continuity choice of indicators 1

REGULATION OF TRANSMISSION CONTINUITY: CHOICE OF INDICATORS (1)

  • R-ENS is expressed in MWh and based upon ENS

  • A limitation function is adopted in order to deal both with transmission major incidents (with large ENS) and small-size ordinary outages

Source: own elaboration

Log scale

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Regulation of transmission continuity choice of indicators 2

REGULATION OF TRANSMISSION CONTINUITY: CHOICE OF INDICATORS (2)

  • NIU includes short and long interruptions for all users directly connection to the national transmission grid

  • NIU = SAIFI + MAIFI

  • NIU is calculated for each of the 8 territorial areas, in which grid operation is organized

  • Unsymmetrical scheme (more penalties than rewards) tailored to the objective of promoting uniformity of quality of transmission service across Italy

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Regulation of transmission continuity choice of indicators 3

REGULATION OF TRANSMISSION CONTINUITY: CHOICE OF INDICATORS (3)

  • UZI is number of grid Users with 0 interruptions per year, referred to the total number of users

  • UZI has a reward-only structure, increasing the rewards for R-ENS and for NIU (in case of over-performance with respect to targets)

  • UZI nature genuinely expresses the nature of transmission service: no grid users have to suffer interruptions due to transmission failures

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Regulation of transmission continuity exclusion causes

REGULATION OF TRANSMISSION CONTINUITY: EXCLUSION CAUSES

  • Automatic intervention of under-frequency load shedding schemes as a consequence of disturbances originated in the neighbouring interconnected countries;

  • Preventive load shedding (communicated at least one day in advance adopting defined procedures) as a consequence of expected lack of generation adequacy;

  • Forced line outages due to public orders (e.g. in case of fire when switching off the HV circuits is demanded by police or fire corps);

  • Extreme disaster situations (e.g. earthquakes);

  • Intentional damages (e.g. terrorist attacks);

  • Extremely large black-outs (above 40000 MWh/event)

  • Outages originated by users and outside NTG (NIU, UZI)

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Voltage quality monitoring distribution and transmission

VOLTAGE QUALITY MONITORINGDISTRIBUTION ANDTRANSMISSION

Powerqualitycontracts

Regulatorymeasurement guidance

Publicationactual quality levels

Multiple/Very longinterruption standard

Guaranteedquality standards

Volt.Qual.Monitoring systems

Telephoneresponse incentives

Incentiveand penalty mechanism

Volt.Qual.minimum standards

MAKE INFORMATION AVAILABLE

PROTECT WORST-SERVED CUSTOMERS

PROMOTE QUALITY IMPROVEMENT

FAVOUR AND TEST MARKET MECHANISMS

COMMERCIAL QUALITY

CONTINUITY OF SUPPLY

VOLTAGE QUALITY

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Electricity quality of service regulation in italy

MONITORING UNITS INSTALLED ON MV BUS-BARS OF HV/MV SUBSTATIONS

400 monitoring units

(they monitor about 10% of the MV bus-bars of the MV distribution network).

The sample is representative of the network characteristics in terms of:

  • number of HV/MV substations in each region

  • length of the MV lines

  • type of MV lines: cable, overhead, mixed

  • neutral compensation or isolated neutral

  • number of MV customers

  • density of LV customers

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Electricity quality of service regulation in italy

MONITORING UNITS INSTALLED ON MV DELIVERY POINTS

73 owned by as many MV customers who decided to voluntarily (with the promotion of the Authority) participate to the monitoring campaign

124 owned by Distribution Network Operators

This sample of units is not statistically representative of the monitored MV network

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Electricity quality of service regulation in italy

AVERAGE NUMBER OF DIPS ACCORDING TO THE NEW prEN50160 /I

Italy, Year 2007, all types of MV networks, MV bus-bars of HV/MV substations

Yellow cells: equipment immunity class 2

Yellow+Green: equipment immunity class 3

Red line: compatibility curve

http://queen.ricercadisistema.it

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Electricity quality of service regulation in italy

AVERAGE NUMBER OF DIPS ACCORDING TO THE NEW prEN50160 /II

Italy, Year 2007, all Regions, all types of MV networks, MV bus-bars of HV/MV substations

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Voltage quality monitoring on transmission and hv distribution networks 1 3

Voltage level

Transmission

HV Distribution

Total

VOLTAGE QUALITY MONITORING ON TRANSMISSION AND HV DISTRIBUTION NETWORKS (1/3)

380 kV

7

0

7

220 kV

10

6

16

150 kV

23

23

46

132 kV

67

27

94

60 kV

0

2

2

Total

107

58

165

Number of installed measurement devices

Source: Terna and Ceer 4th Benchmarking Report, 2008

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Voltage quality monitoring on transmission and hv distribution networks 2 3

Residual voltage u

Duration t (ms)

VOLTAGE QUALITY MONITORING ON TRANSMISSION AND HV DISTRIBUTION NETWORKS (2/3)

(%)

20 < t ≤ 100

100 < t ≤ 500

500 < t ≤ 1000

1000 < t ≤ 3000

3000 < t ≤ 60000

Total

90 > u ≥ 85

19.0

1.5

0.1

0.0

0.0

20.6

85 > u ≥ 70

24.2

3.5

0.3

0.0

0.0

28.0

70 > u ≥ 30

13.6

2.4

0.6

0.1

0.0

16.7

30 > u ≥ 10

0.5

0.3

0.0

0.0

0.1

0.9

10 > u

1.8

0.5

0.1

0.0

0.0

2.4

Total

59.1

8.2

1.1

0.1

0.1

68.6

Number of dips per measurement point on 380kV and 220kV networks, year 2007.

Source: Terna and Ceer 4th Benchmarking Report, 2008

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Voltage quality monitoring on transmission and hv distribution networks 3 3

Residual voltage u

Duration t (ms)

VOLTAGE QUALITY MONITORING ON TRANSMISSION AND HV DISTRIBUTION NETWORKS (3/3)

(%)

20 < t ≤ 100

100 < t ≤ 500

500 < t ≤ 1000

1000 < t ≤ 3000

3000 < t ≤ 60000

Total

90 > u ≥ 85

25.5

6.9

0.9

0.4

0.1

33.8

85 > u ≥ 70

24.4

6.3

0.6

0.2

0.0

31.5

70 > u ≥ 30

12.6

4.7

0.3

0.2

0.0

17.8

30 > u ≥ 10

1.1

0.9

0.1

0.1

0.1

2.3

10 > u

1.9

0.6

0.1

0.0

0.1

2.7

Total

59.1

19.4

2.0

0.9

0.3

88.1

Number of dips per measurement point on 150kV and 132kV networks, year 2007.

Source: Terna and Ceer 4th Benchmarking Report, 2008

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Commercial quality supply

COMMERCIAL QUALITYSUPPLY

Powerqualitycontracts

Regulatorymeasurement guidance

Publicationactual quality levels

Multiple/Very longinterruption standard

Guaranteedquality standards

Volt.Qual.Monitoring systems

Telephoneresponse incentives

Incentiveand penalty mechanism

Volt.Qual.minimum standards

MAKE INFORMATION AVAILABLE

PROTECT WORST-SERVED CUSTOMERS

PROMOTE QUALITY IMPROVEMENT

FAVOUR AND TEST MARKET MECHANISMS

COMMERCIAL QUALITY

CONTINUITY OF SUPPLY

VOLTAGE QUALITY

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Electricity quality of service regulation in italy

COMMERCIAL QUALITY REGULATION IN ITALY NEW GUARANTEED STANDARDS FOR SUPPLY ELECTRICITY & GAS (FROM 2009)

  • MAXIMUM WAITING TIMES(All standards are in solar days)

    • Appropriate response to a complaint40

    • Invoice amendment 90

    • Invoice amendment for multiple invoice 20

  • When guaranteed standards are not met by fault of the utility, users are entitled to receive automatic compensation payments through their bills

  • Level of compensation payments are related to the type of user involved:

    • domestic, business, industry: 20€

    • escalation like for commercial quality for distribution

  • Users can always appeal to the court if damage is over the compensation payment

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Commercial quality regulation in italy new overall standards for supply electricity gas from 2009

COMMERCIAL QUALITY REGULATION IN ITALY NEW OVERALL STANDARDS FOR SUPPLY ELECTRICITY & GAS (FROM 2009)

  • Answers to written requests of invoice amendment:

    • 40 solar days in 95% of cases

  • Answers to written requests of information:

    • 30 solar days in 95% of cases

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Complaints handling

COMPLAINTS HANDLING

One of the functions assigned by the institutional Law 481/99 is to assess complaints, appeals and reports from users or consumers, individually or as a body, as to respect for standards of quality and tariffs by the service operators

The Authority has a specific Department in charge for information and customer protection, having mainly the following tasks:

  • to set rules for protecting customers (about contracts conditions, billing transparency, pre-contractual information and so on)

  • to ensure transparency and information, having care for the relationships with Consumers’ Organizations

  • handlingconsumers’ complaints

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Complaints handling evolution

COMPLAINTS HANDLING EVOLUTION

How many complaints?

Main reasons for complaining (ex.: apr. 07-may 08)

  • Billing33%

  • Contracts 19%

  • Pre-contractual information/misselling15%

  • Disconnection for non-payment 9%

  • Quality of service (outages, connections, volt. quality) 9%

  • Consumption (estimate consumption, meter reading)2,6%

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The new consumers helpdesk

THE NEW CONSUMERS’ HELPDESK

  • The increasing number of complaints and the need for an effective and satisfactory answer suggested to start, in 2007, the project for an externalization of complaints handling, giving the responsibility for the first stage to another public subject

  • The consumers’ helpdesk has the task to develop all the activities that can be considered in preparation of a proceedings:

    • Receives complaints and appeals from the consumers and creates a file for each complaint

    • Asks for information and clarifications to the suppliers

    • Suggests to the customers and to the suppliers the measure to adopt in order to solve the problems raised

    • When the problem cannot be solved, or the consumer isn’t satisfied about the answer transfers the file to the Authority for the final evaluation

    • Reports to the Authority about the complaints received and the activity carried out

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Only one interface for the consumer the supplier

ONLY ONE INTERFACE FOR THE CONSUMER: THE SUPPLIER

  • There is a timeliness obligation in force for Suppliers: 2 working days for sending the request of the final consumer to the Distributor and 2 working days for sending the answer of the Distributor to the final consumer

  • Currently there aren’t any automatic compensations if the Supplier does not meet the above timeliness.

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Regulation of call centers

REGULATION OF CALL CENTERS

  • Minimum requirements: opening time of Call Centers with human operator; information through the bill and internet web site

  • Standard: measured on monthly base

    • Access to the service AS  80%

    • Average waiting time TMA  240 sec.

    • Service level LS  90%

  • Customer satisfaction: six month base survey on satisfaction of final customer who called the call center (through the call back methodology)

  • Benchmarking score: published on six month base – three sub scores:

    • PA depending on the accessibility to the service

    • PQ depending on the quality of the service

    • PSC depending on the result of the call back survey

      IQT = [(PA+ PQ) / (PA+ PQ)maxx 100 ] x 0,7 + PSCx 0,3

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Call center performance ranking publication for the period jul dec 2008

CALL CENTER PERFORMANCE RANKINGPUBLICATION (*) for the period Jul-Dec 2008

Electricity and gas suppliers more than 100.000 final customers.

(*) On the web site of the Autorità + press release

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Agenda1

AGENDA

  • Overview on the electricity quality of service regulation

  • Short overview on the electricity and gas smart metering regulation

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Metering regulatory framework

METERING REGULATORY FRAMEWORK

Electricity

Gas

Regime

Operator responsible for metering services

Accounting separation

Unbundling reform

Separation of the metering tariff

Functional unbundling in force

Regulated

DNO (until 2008 Retailers could carry out meter reading)

DNO

2001

2007

2009 (from the distribution tariff and from the retail tariff component)

2004 (from the distribution tariff)

2012

2010

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Smart metering regulatory framework

SMART METERING REGULATORY FRAMEWORK

  • Both electricity and gas sectors are covered by smart metering (and metering) regulations

  • In both cases minimum functional requirements and deadlines (with penalties) for installation/commissioning have been introduced

  • Electricity: Regulatory Orders 292/06 and 235/07 (in English: http://www.autorita.energia.it/docs/06/292-06allengnew.pdf)

  • Gas: Regulatory Order ARG/gas 155/08: (in English http://www.autorita.energia.it/docs/08/155-08alleng.pdf)

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Smart metering regulatory approach

SMART METERING - REGULATORY APPROACH

Two different approaches

  • Electricity: judged unavoidable the implementation of smart metering at Country level (that’s for all DNOs) after the ENEL choice

  • Gas: impact assessment (cost-benefit analysis, technical survey, …)

    Drivers

  • Need to pursue objectives

  • Directive 2006/32/EC (transposed to the Italian legislation in May 2008 - decree n. 115/08)

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Why minimum requirements

WHY MINIMUM REQUIREMENTS

  • In order to guarantee:

    • the pursuance of the objectives

    • the same options to all customers (household/non household; free/in the protection scheme)

    • interoperability and standardization

  • They should fulfil the following criteria:

    • system oriented

    • such as to avoid raising of barriers or limits to technical/technological innovation

    • such as to prevent the rejection of new solutions/architectures

    • be independent from telecommunications systems

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Electricity smart metering

ELECTRICITY SMART METERING

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What done

WHAT DONE

  • February/May 2006: made a formal request of information to Enel, Acea Rome and to major European manufacturers of smart meters (in practice smart metering systems were studied from the functional points of view)

  • July 2006: published the consultation document n. 23/06

  • December 2006: published the regulatory order 292/06, introduced:

    • replacement obligations

    • minimum functional requirements

  • September 2007: introduced performance indicators for smart metering systems, for the time being only for monitoring purposes (regulatory order 235/07)

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Objectives

OBJECTIVES

  • To help ensure competitiveness in the supply of electricity to residential and non-residential customers

  • To establish the functional and technological conditions to make it possible to extend hourly metering to low-voltage withdrawal points also

  • To improve the quality of the electricity metering, supply and distribution services for LV consumers and ensure the same functional and performance levels both for customers in the free market and those in the universal service

  • (Not included in the R.O.): to look further some specific requirements, in particular consumption awareness (remote display) and demand response issues (home and building automation)

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Smart meters for lv customers mandatory timetable 1 2

SMART METERS FOR LV CUSTOMERSMandatory timetable (1/2)

(*) not recognized CAPEX for electromechanical meters not replaced

Each year of the period 2009-2012 DNOs are obliged to communicate to the Autorità the level of installation and commissioning of smart meters

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Smart meters for lv customers mandatory timetable 2 2

SMART METERS FOR LV CUSTOMERSMandatory timetable (2/2)

  • Starting from 1 January 2008, for each low-voltage withdrawal point through which the injection of active electricity into the network is activated, DNOs shall install one single smart meter, single-phase for single-phase applications and three-phase for three phase applications.

First step towards smart grids

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Electricity quality of service regulation in italy

SMART METERS FOR LV CUSTOMERSCurrent status of the commissioning planSnapshot at 30 June 2009 for major DNOs

Enel distribuzione

Acea Roma

Aem Milano

Aem Torino

Set distribuzione

Asmea Brescia

Hera Bologna

Agsm Verona

No. of

LV customers

% of LV customers equipped with commissioned smart meters

DNO

30,063,172

1,552,054

856,278

554,992

227,255

220,893

163,728

159,328

95.4%

57.8%

28.2%

31.0%

27.6%

92.4%

32.6%

31.3%

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Main minimum functional requirements amm 1 2

MAIN MINIMUM FUNCTIONAL REQUIREMENTS-AMM (1/2)

Specified for:

  • Single phase mono-directional meters

  • Single phase bi-directional meters

  • Three-phase phase mono-directional meters

  • Three-phase bi-directional meters

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Main minimum functional requirements amm 2 2

MAIN MINIMUM FUNCTIONAL REQUIREMENTS-AMM (2/2)

  • TOU price scheme (weekly profile): up to four bands, up to five intervals per day (1 totalizer + 4 band registers)

  • Interval metering (min. 1 hour, depth = 36 days)

  • Remote transactions [consumption reading (registers and intervals), supply activation/deactivation, change of the subscribed power, change of the TOU tariff, power reduction]

  • Security of data (inside meters, during the transmission to the control centre, status word with prompt transmission to the control centre in case of meter failure)

  • Freezing of withdrawal data (billing, contractual changes, switching)

  • Breaker on board of meters + demand control algorithm (alternative: registration of the peak power per TOU band)

  • Meter display (current totalizer and activated TOU band registers, last freezing)

  • Slow voltage variations (according to EN50160)

  • Upgrade of the program software

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Perfomance requirements

PERFOMANCE REQUIREMENTS

  • After the introduction of minimum functional requirements, some performance indicators of AMM systems have been introduced (R.O. 235/07):

    • Annual percentage of successful remote transactions (activation/deactivation, change of the subscribed power, change of the price scheme, power reduction) within 24 hours and within 48 hours

    • Annul number of meters that at least once registered a failure reported to the control centre (through the status word)

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The metering tariff

THE METERING TARIFF

  • 2004: separated the metering tariff from the distribution tariff

  • 2004-2007: the “extra-charge” for each household customer due to smart meters has been less than 2 Euros per year

  • 2008-2013:

    • the X factor will be 5% for metering activities (vs 1.9 % of distribution activities)

    • the metering tariff is/will be adjusted every year

  • An equalization mechanism is envisaged in order to recognize higher costs to smaller DNOs

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Interval meters for hv and mv customers

INTERVAL METERS FOR HV AND MV CUSTOMERS

  • HV customers and major MV customers have been equipped with interval meters (15min – 1 hour) since the second half of 80s

  • In 2004 were introduced obligations for the installation of interval meters (1 hour) for all MV customers:

    • P>500kW by June 2004

    • P=201-500kW by December 2004

    • P=101-200kW by December 2005

    • P<=100kW by December 2006

  • Currently all HV and MV customers (free or under the protection scheme) are actually equipped with interval meters and treated on hourly base

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Gas smart metering

GAS SMART METERING

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Gas what done

July 2006: announced smart metering implementation in the gas sector

May/October 2007: made a cost-benefit analysis, a technical benchmark, a survey on the use of AMR/AMM systems in Europe

July 2007: published the first consultation document (first thoughts)

November 2007: established a WG (still alive) on “What minimum functional requirements for smart meters” (participants: the Autorità, DNOs, retailers, meters manufacturers, the Italian Gas Committee)

February/April 2008: sent a request of information on installed meters to major DNOs

June 2008: published the second consultation document (final thoughts)

October 2008: Published the Regulatory Order ARG/gas 155/08

GAS: WHAT DONE

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Gas objectives

GAS: OBJECTIVES

  • To make it easier to eliminate any inefficiencies and discriminatory features by improving the process of recording and accounting for the natural gas withdrawn by consumers and introducing technological innovations to metering units

  • To create the functional and technological conditions for the introduction of mechanisms to develop a market system for natural gas and support the definition of the regulated market for natural gas and the new balancing service

  • To improve the quality of natural gas metering, sales and distribution services, while ensuring the same functional and service levels irrespective of the operator responsible for the metering service and at the same timefostering greater awareness of consumption levels

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Gas timetable for the commissioning of smart meters

GAS: TIMETABLE FOR THE COMMISSIONING OF SMART METERS

Commissioning deadline

Percentage

Penalty

[€/meter non commissioned]

> G40

31 December 2010

100%

54

≥ G16 and ≤ G40

31 December 2011

100%

21

> G6 and < G16

31 December 2011

30%

12

31 December 2012

100%

≤ G6

31 December 2012

5%

4

31 December 2013

20%

31 December 2014

40%

31 December 2015

60%

31 December 2016

80%

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Gas towards the roll out 1 2

GAS: TOWARDS THE ROLL-OUT (1/2)

Carried out in 2007:

  • a survey on the use of gas AMR/AMM systems in Europe, found:

    • projects running (in some cases combining electricity and gas)

    • different technologies of involved meters in the system (traditional+data logger module/new generation meters)

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Gas towards the roll out 2 2

GAS: TOWARDS THE ROLL-OUT (2/2)

Carried out in 2007:

  • a benchmark on gas smart meters, found:

    • availability of new functionalities

    • availability of new measurement technologies (mature, but with low level of industrialization) with correction of temperature and temperature+pressure

    • some models already MID certified for both pressure and temperature correction or only for temperature correction

    • availability of solutions with electrovalve on board

    • problems coming from the battery life: depends on environmental conditions, on the frequency and the amount of data to be transmitted by the meter, on the use of the display, etc

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Gas some ex ante decisions

GAS: SOME EX-ANTE DECISIONS

  • Quantitative cost-benefit analysis to be done DNO side, that’s the actor that will make investments and meter reading activities

  • Quantitative cost-benefit analysis to be differentiated according to the size of DNOs. Large (>500,000 consumers), Medium (50,000-500,000 consumers) and Small (<50,000 consumers)

  • To be assessed both AMR and AMM (*) for household consumers (annual consumption < 5,000 m3) and only AMR for the others (annual consumption >5,000 m3)

  • Pointed out a difficulty in carrying out a quantitative cost-benefit analysis consumer side in particular for households

(*) AMM = AMR + electrovalve on smart meter devices that cannot be opened remotely.

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Gas some ex ante hypotheses

GAS: SOME EX-ANTE HYPOTHESES

  • No extra-charges for customers were assumed to obtain the NPV shown in the following

  • Costs did not include the residual depreciation of traditional meters due to be replaced by smart meters

  • The periodical replacement of the power supply batteries was considered: once in the life-cycle of smart meters in the consumption band up to 5,000 m3/year and every two years for smart meters in the consumption band over 5,000 m3/year

  • The installation, on average, of one data concentrator every twelve smart meters was assumed (more than 95% of smart meters will be managed through data concentrators)

  • The costs needed to interface smart metering systems with billing systems were considered

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Gas findings of the cost benefit analysis 1 4

Annual consumption bands

Size of DNO

(no. of customers)

GAS: FINDINGS OF THE COST-BENEFIT ANALYSIS (1/4)

Large

(> 500,000)

Medium

(50,000-500,000)

Small

(< 50,000)

Case 1: < 5,000 m3, AMM

1 – 1.18

1.27 – 1.46

3.14 – 3.35

Case 2: < 5,000 m3, AMR

1

1.26

3.33

Case 3: 5,000–200,000 m3, AMR

1

1.16

1.89

Case 4: > 200,000 m3, AMR

1

1.12

1.43

Case 5: < 5,000 m3, AMM (Case 1)

≥ 5,000 m3, AMR (Cases 3 and 4)

1 – 1.17

1.26 – 1.44

3.05 – 3.25

Cost of a single commissioned measurement point normalised to the cost of a large DNO

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Gas findings of the cost benefit analysis 2 4

Annual consumption bands

Size of DNO

(no. of customers)

GAS: FINDINGS OF THE COST-BENEFIT ANALYSIS (2/4)

Large

(> 500,000)

Medium

(50,000-500,000)

Small

(< 50,000)

Case 1: < 5,000 m3, AMM

1

1.19

1.43

Case 2: < 5,000 m3, AMR

1

1.32

1.69

Case 3: 5,000–200,000 m3, AMR

1

1.09

1.19

Case 4: > 200,000 m3, AMR

1

1.06

1.13

Case 5: < 5,000 m3, AMM (Case 1)

≥ 5,000 m3, AMR (Cases 3 and 4)

1

1.17

1.37

Annual benefit for a single measurement point normalised to the cost of a large DNO

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Gas findings of the cost benefit analysis 3 4

Annual consumption bands

Size of DNO

(no. of customers)

GAS: FINDINGS OF THE COST-BENEFIT ANALYSIS (3/4)

Large

(> 500,000)

Medium

(50,000-500,000)

Small

(< 50,000)

Case 1: < 5,000 m3, AMM[1]

-8

-11

-130

Case 2: < 5,000 m3, AMR

-26

-23

-99

Case 3: 5,000–200,000 m3, AMR

613

685

633

Case 4: > 200,000 m3, AMR

1,151

1,227

1,182

Case 5: < 5,000 m3, AMM (Case 1)

≥ 5,000 m3, AMR (Cases 3 and 4)

7

6

-112

NPV at year 15 for different annual consumption bands [€/meter]

AMM = AMR + electrovalve on smart meter devices that cannot be opened remotely.

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Gas findings of the cost benefit analysis 4 4

GAS: FINDINGS OF THE COST-BENEFIT ANALYSIS (4/4)

  • Quantified benefits (in Euros) were found for suppliers as well

  • Those benefits were not used to assess the NPV shown in the previous slide

  • From a qualitative point of view several benefits were assessed also for the “gas-system” as a whole

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Gas focus points

GAS: FOCUS POINTS

  • Compensation of Temperature and Pressure (the latter not adopted for household customers)

  • Electrovalve on board of meters for household customers (AMM for G4/G6)

  • Parametrizeable interval metering (minimum interval: 1h for >= G10, 1 day for G4/G6)

  • TOU withdrawal schemes

  • Standardization and interoperability

  • Battery life (and limitations implied by it)

  • Communication between data concentrators and meters

  • Installation of data concentrators (power supply, location)

  • Potential displacement of meters

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Gas min functional requirements adopted

Minimum functional requirement

≥ G10

(AMR)

< G10

(AMM)

GAS: MIN. FUNCTIONAL REQUIREMENTS ADOPTED

Metering units’ clock/calendar capable of managing seconds; synchronised with the same reading frequency; maximum monthly drift shall not exceed:

Temperature adjustment. Measure of the gas withdrawn at standard temperature conditions (15°C).

Pressure adjustment. Measure of the gas withdrawn at standard pressure conditions (1,01325 bar).

Withdrawal totaliser register. One single incremental totaliser register.

Time-of-use withdrawal totaliser registers. Three separate totaliser registers, three types of day, up to five intervals a day. Schedule updatable twice a year.

Interval metering. 70-day capacity, minimum interval:

Saves and backups of withdrawal totaliser register. Min. six-monthly, max monthly; whenever a new TOU schedule comes into operation. Withdrawal registers must be kept after the battery has been replaced or has run out.

Withdrawal data security. Mechanisms to protect and monitor withdrawal registers.

Diagnostics. Self-diagnosis checks, including one on the maximum monthly drift. Result recorded in a status word for transmission to the remote management centre.

Display. At the customer’s request: date and time, current and last save withdrawal registers, the register active at the time of display, any alarm showing that the metering unit has recorded an anomaly.

Electrovalve. Available on meters, cannot be opened remotely. During any power-supply failures it retains its state.

Up-dating of the metering unit software programme.

Information on real-time withdrawal. At customer’s request only (see the paragraph “Compliance with European Directive 2006/32/EC”).

3 min.

Yes

Yes

Yes

Yes

1 hour

Yes

Yes

Yes

Yes

No

Yes

Pulse emitter output

5 min.

Yes

No

Yes

Yes

1 day

Yes

Yes

Yes

Yes

Yes

Yes

Additional physical or logical communication gate (regulatory framework still to be defined)

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Electricity quality of service regulation in italy

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