MEASUREMENT, REGULATION AND CONTROL OF CONTINUITY OF ELECTRICITY SUPPLY IN ITALY

Transcription

1 MEASUREMENT, REGULATION AND CONTROL OF CONTINUITY OF ELECTRICITY SUPPLY IN ITALY Luca Lo Schiavo Quality and Consumer Affairs, Deputy Director, Italy This presentation is not an official AEEG document CIRED, Barcelona, 15-May-2003

2 ELECTRICITY SUPPLY SERVICE Main quality factors ELECTRICITY SUPPLY SERVICE MINIMUM CONTRACTUAL PRACTICES COMMERCIAL QUALITY CONTINUITY OF SUPPLY OTHER PARAMETERS OF POWER QUALITY SECURITY DEPOSITS TOOLS FOR PAYING BILLS NON PAYMENT HANDLING DISCONNECTIONS FOR DEBT COMPLAINTS READING BILLING NEW SUPPLY ESTIMATES CONNECTIONS TO NETWORK PROVING SUPPLY RICONNECTIONS AFTER NON-PAYMENT DISCONNECTIONS APPOINTMENTS VOLTAGE AND METERS INVESTIGATIONS UNPLANNED SUPPLY INTERRUPTIONS (LONG) UNPLANNED SUPPLY INTERRUPTIONS (SHORT AND TRANSIENT) PLANNED SUPPLY INTERRUPTIONS VOLTAGE LIMITS VOLTAGE DIPS HARMONICS FLICKER SUPPLY DISTRIBUTION

3 FOCUS: LONG UNPLANNED INTERRUPTIONS ELECTRICITY SUPPLY SERVICE MINIMUM CONTRACTUAL PRACTICES COMMERCIAL QUALITY CONTINUITY OF SUPPLY OTHER PARAMETERS OF POWER QUALITY SECURITY DEPOSITS TOOLS FOR PAYING BILLS NON PAYMENT HANDLING DISCONNECTIONS FOR DEBT COMPLAINTS READING BILLING NEW SUPPLY ESTIMATES CONNECTIONS TO NETWORK PROVING SUPPLY RICONNECTIONS AFTER NON-PAYMENT DISCONNECTIONS APPOINTMENTS VOLTAGE AND METERS INVESTIGATIONS UNPLANNED SUPPLY INTERRUPTIONS (LONG) UNPLANNED SUPPLY INTERRUPTIONS (SHORT AND TRANSIENT) PLANNED SUPPLY INTERRUPTIONS VOLTAGE LIMITS VOLTAGE DIPS HARMONICS FLICKER SUPPLY DISTRIBUTION

4 THE ELECTRICITY DISTRIBUTION AND SUPPLY IN ITALY USERS LV: USERS MV: USERS HV: about 32 millions, about 115 TWh about (almost all eligible), about 90 Twh < (all eligible), about 50 TWh (+25 self-consumption) SUPPLY MARKET ENEL 94 % 90% SHARES: OTHERS 7 % 10% ENEL STRUCTURE: OTHER SUPPLIERS MICRO SUPPLIERS HV: 14 regional divisions MV/LV: 74 distribution units > users: 7 10 local utilities users: 30 local utilities about 140 ( ) small utilities (<5.000 users)

5 THE STARTING POINT: INTERNAL GAPS (Source: Enel, 1997) 1200 YEAR-CUMULATIVE DURATION OF INTERRUPTION (MINUTES LOST PER LV USER; Enel) Northern Italy Central and Southern Italy

6 THE STARTING POINT: EXTERNAL GAP (Source: CEER WG on Quality of Supply, 2001) PORTUGAL (5) SPAIN (4) SWEDEN FRANCE (3) CUSTOMER MINUTES LOST, 1999 (Unplanned Long interruptions) NETHERLANDS NORWAY (2) UK ITALY (1) NOTES (for detail of comparison see full report) (1) Only Enel (93% of Italy) (2) Only interruptions above 1 kv (3) Excluded exceptional storms (455 min. lost storms included) (4) Only interruptions above 1 kv; TIEPI (hours lost; indicator weighted on affected power) (5) Only interruptions above 1 kv, planned and unplanned; TIEPI (see above)

7 CONTINUITY OF SUPPLY REGULATION Objectives ENHANCE THE OVERALL LEVEL OF CONTINUITY IN ITALY IMPROVE THE COUNTRY AVERAGE LEVEL TOWARDS EUROPEAN BENCHMARKS REDUCE THE GAPS BETWEEN NORTH AND SOUTH REDUCE VARIATION OF REGIONAL AND DISTRICT LEVELS AROUND THE COUNTRY AVERAGE LEVEL MAINTAIN LEVELS OF CONTINUITY IF ALREADY GOOD AVOID TO DETERIORATE BEST-SERVED AREAS INTRODUCE FLEXIBILITY FOR SPECIAL QUALITY NEEDS NEW PRICE OPTIONS WITH SPECIAL QUALITY LEVELS: MARKETING DEVELOPMENT ORIENTED TO INDUSTRIAL USERS

8 CONTINUITY OF SUPPLY REGULATION Tools CONTINUITY INDICATORS ORIENTED TO POINT OUT THE RESPONSIBILITY OF DISTRIBUTION SUPPLIERS MINUTES LOST PER LV USERS, NET OF INTERRUPTIONS CAUSED BY ACT OF GOD AND BY USERS OR THIRD PARTIES AND NET OF INTERRUPTIONS ORIGINATED IN THE EHV/HV NETWORK CONTINUITY INDICATORS MEASURED AT DISTRICT LEVEL 300 DISTRICTS (ABOUT 100 FOR URBAN AREAS, 100 FOR SUBURBAN, 100 FOR RURAL AREAS) COVERING ALMOST ALL THE COUNTRY MECHANISMS TO MAKE THE INDICATOR MORE SOUND IN RESPECT OF WEATHER EFFECTS 2-YEARS ROLLING AVERAGE DEADBANDS (+/- 5%)

9 MAIN EFFECTS OF NEW REGULATION OF CONTINUITY OF SUPPLY /1 LV customer minutes lost (yearly actual levels) improvement : 43% CUSTOMER MINUTES LOST TOTAL CUSTOMER MINUTES LOST NET (UNDER REGULATION)

10 MAIN EFFECTS OF NEW REGULATION OF CONTINUITY OF SUPPLY /2A TOTAL CUSTOMER MINUTES LOST - all causes Minutes lost per year, LV users NORD CENTRO SUD ITALIA

11 MAIN EFFECTS OF NEW REGULATION OF CONTINUITY OF SUPPLY /2B CUSTOMER MINUTES LOST - distributor resonsibility only Minutes lost per year, LV users NORD CENTRO SUD ITALIA

12 MAIN EFFECTS OF NEW REGULATION OF CONTINUITY OF SUPPLY /3 NUMBER OF INTERRUPTION PER LV CUSTOMER PER YEAR NORD CENTRO SUD ITALIA

13 MAIN EFFECTS OF NEW REGULATION OF CONTINUITY OF SUPPLY /4A minutes lost per customer per year (only utility responsibility 350 interruptions) HIGH DENSITY DISTRICTS Legenda 250 max value 90 percentile percentile 100 min value (ambiti districts n. 85) n districts (ambiti n. n. 90) districts (ambiti n. n. 91) districts (ambiti n. n. 92) districts (ambiti n. n. 92) 92 anni

14 MAIN EFFECTS OF NEW REGULATION OF CONTINUITY OF SUPPLY /4B minutes lost per customer per year (only utility responsibility interruptions) LOW DENSITY DISTRICTS Legenda 700 max value percentile min value 10 percentile districts (ambiti n. 106) districts (ambiti n. n. 107) districts (ambiti n. n. 108) (ambiti districts n. 109) n districts (ambiti n. n. 109) 109 anni

15 CONTINUITY OF SUPPLY REGULATION How does it work? THE FUNDAMENTAL REQUIREMENT: A MEASUREMENT SYSTEM UTILITY: ENEL Distribuzione Spa INTERRUPTIONS: UNPLANNED, LONG YEAR: 2000 TERRITORY: ALL AGGREGATE UP TO MONTH: 12 DURATION (CML, SAIDI) ORIGIN CAUSE EHV HV MV LV ALL Utility's responsibility 1,4 2,1 140,0 24,4 167,8 Users' or third parties' respons. 1,3 0,4 20,6 2,3 24,7 Acts of God 0,3 0,0 24,6 1,2 26,1 Total all causes 3,0 2,5 185,3 28,0 218,7 NUMBER (CIs, SAIFI) Utility's responsibility 0,07 0,09 2,96 0,20 3,31 Users' or third parties' respons. 0,05 0,03 0,35 0,01 0,44 Acts of God 0,01 0,00 0,18 0,00 0,19 Total all causes 0,13 0,12 3,49 0,22 3,95

16 CONTINUITY OF SUPPLY REGULATION How does it work? THE MAIN IDEA: A CONVERGENCY SYSTEM CUST.MIN.LOST IMPROVEMENT STARTING LEVELS LOCAL CONTINUITY STDs AVERAGE OF LOC. CONT. STDs NATIONAL REFERENCE STDs YEARS

17 CONTINUITY OF SUPPLY REGULATION How does it work? IN EACH DISTRICT MINUTES LOST MUST DECREASE EACH YEAR ACCORDING TO THE FOLLOWING BASIC IMPROVEMENT RATES 2-YEAR AVERAGE LEVEL (MINUTES LOST) URBAN AREAS SUBURBAN AREAS RURAL AREAS BASIC IMPROVEMENT RATES UP TO 30 min. UP TO 45 min. UP TO 60 min. 0% 31 TO 60 min. 46 TO 90 min. 61 TO 120 min. 5% 61 TO 90 min. 91 TO 135 min. 121 TO 180 min. 8% 91 TO 120 min. 136 TO 180 min. 181 TO 240 min. 10% 121 TO 150 min. 181 TO 270 min. 241 TO 360 min. 13% OVER 151 min. OVER 271 min. OVER 361 min. 16% EXPECTED NATIONAL AVERAGE IMPROVEMENT: 10% A YEAR

18 CONTINUITY OF SUPPLY REGULATION How does it work? IF UTILITIES IMPROVE CONTINUITY MORE THAN REQUIRED BY BASIC IMPROVEMENT RATES UTILITIES GAIN AN EXTRA INCENTIVE RELATED TO THE EXTRA- IMPROVEMENT IF UTILITIES IMPROVE CONTINUITY LESS THAN REQUIRED BY BASIC IMPROVEMENT RATES UTILITIES MUST PAY A PENALTY RELATED TO THE LESS-THAN-BASIC IMPROVEMENT IN BOTH CASES, THE EXTRA-IMPROVEMENT OR THE LESS- THAN-BASIC IMPROVEMENT ARE VALUATED USING THE PARAMETER OF 600 Lire/min/kW (about 18 /kwh) THE PARAMETER IS ADJUSTED TO TAKE INTO ACCOUNT THE LEVEL OF CONTINUITY (THE BETTER THE CONTINUITY, THE HIGHER THE PARAMETER)

19 CONTINUITY OF SUPPLY REGULATION Example for an urban district ACTUAL LEVEL (SIMULATION ) ACTUAL 2-YEAR ROLLING AVERAGE DISTRICT-WIDE BASIC STANDARD NATION-WIDE REFERENCE STANDARD EXPLANATIONS: : THE STARTING POINT IS THE 2-YEAR AVERAGE OF ACTUAL LEVELS FOR YEARS MINUTES LOST YEARS

20 CONTINUITY OF SUPPLY REGULATION Example for an urban district MINUTES LOST ACTUAL LEVEL (SIMULATION ) ACTUAL 2-YEAR ROLLING AVERAGE DISTRICT-WIDE BASIC STANDARD NATION-WIDE REFERENCE STANDARD EXPLANATIONS: STANDARD SETTING: BASIC IMPROVEMENT RATES ARE APPLIED TO THE STARTING POINT, TO SET STANDARDS YEARS

21 CONTINUITY OF SUPPLY REGULATION Example for an urban district MINUTES LOST ACTUAL LEVEL (SIMULATION ) ACTUAL 2-YEAR ROLLING AVERAGE DISTRICT-WIDE BASIC STANDARD NATION-WIDE REFERENCE STANDARD EXPLANATIONS: 2000: ACTUAL 2-YEAR AVERAGE ( ) BETTER THAN STANDARD, BUT IN THE DEADBAND: NEITHER INCENTIVE NOR PENALTY YEARS

22 CONTINUITY OF SUPPLY REGULATION Example for an urban district 120 EXPLANATIONS: MINUTES LOST ACTUAL LEVEL (SIMULATION ) ACTUAL 2-YEAR ROLLING AVERAGE DISTRICT-WIDE BASIC STANDARD NATION-WIDE REFERENCE STANDARD 2001: ACTUAL LEVEL WORSE THAN BASIC STANDARD, BUT 2- YEAR AVERAGE IN THE DEADBAND: NEITHER INCENTIVE NOR PENALTY YEARS

23 CONTINUITY OF SUPPLY REGULATION Example for an urban district 120 EXPLANATIONS: MINUTES LOST ACTUAL LEVEL (SIMULATION ) ACTUAL 2-YEAR ROLLING AVERAGE DISTRICT-WIDE BASIC STANDARD NATION-WIDE REFERENCE STANDARD 2002: ACTUAL LEVEL BETTER THAN BASIC STANDARD, AND 2-YEAR AVERAGE OUTSIDE THE DEADBAND: INCENTIVE, PROPORTIONAL TO THE DISTANCE BETWEEN BASIC STANDARD AND 2- YEAR ROLLING AVERAGE YEARS

24 CONTINUITY OF SUPPLY REGULATION Example for an urban district 120 EXPLANATIONS: MINUTES LOST ACTUAL LEVEL (SIMULATION ) ACTUAL 2-YEAR ROLLING AVERAGE DISTRICT-WIDE BASIC STANDARD NATION-WIDE REFERENCE STANDARD 2002 AND 2003: INCENTIVE LINKED TO THE ARROWS (= DIFFERENCE BETWEEN BASIC STANDARD AND 2-YEAR ROLLING AVERAG E) YEARS

25 CONTINUITY OF SUPPLY REGULATION Actual simulation LV CUSTOMER MINUTES LOST Incentives: 1,76 M (0,06 /consumer) AVERAGE COST FOR USERS OVER 4 YEARS ( ): 3 /CUSTOMER/YEAR Incentives: 32,4 M (1,08 /consumer) Incentives: ~ 123 M (4,12 /consumer) ACTUAL YEARLY LEVEL (CML NET) ACTUAL 2-YEAR ROLLING AVERAGE DISTRICT-WIDE BASIC STANDARD Expected incentives: ~200 M (6,89 /consumer) districts districts districts districts 2003 (simulation) 313 districts

26 CONTINUITY OF SUPPLY REGULATION How is it funded? THE INCENTIVE SYSTEM IS FUNDED THROUGH: THE PENALTIES PAID BY UTILITIES FOR DISTRICTS IN WHICH THE BASIC IMPROVEMENT RATES ARE NOT MET A Q-PARAMETER IN THE PRICE-CAP FORMULA: P = RPI -X +Q TO COLLECT THE DIFFERENCE BETWEEN INCENTIVES AND PENALTIES BECAUSE TARIFF IS UNIQUE, AN EQUALISATION FUND IS NEEDED TO DISTRIBUTE INCENTIVES/PENALTIES TO UTILITIES ACCORDING TO RESULTS: example Ipothesis: same incentive or penalty in each district urban semi-urban rural distributor = distributor 2 - = + distributor incentives 4 x (+1) = 4 deadbands 2 x 0 = 0 penalties 3 x (-1)= -3 net (to be collected) 1 3 penalties from distributors Equalization Fund 4 incentives to distributors 1 collected from tariffs (Q-parameter)

27 CONTROL OF CONTINUITY OF SUPPLY Criteria and procedures BECAUSE DATA ON CONTINUITY LEVELS ARE PROVIDED BY UTILITIES, THE AUTHORITY MUST CONTROL THAT INTERRUPTIONS ARE RECORDED IN A COMPLETE AND SATISFACTORY MANNER, ACCORDING TO THE MEASUREMENT RULES. AUDITS ARE CARRIED OUT ON A RANDOMLY SELECTED SAMPLE OF DISTRICTS. AN AUDIT MAY LAST OF ONE OR TWO DAYS AND IS CONDUCTED IN SITE AT THE SCADA OPERATING CENTRE. THE INTERRUPTIONS AUDITED ARE RANDOMLY SAMPLED BOTH FROM REGULATED AND EXCLUDED INTERRUPTIONS. GENERALLY, AT LEAST 10% OF THE TOTAL NUMBER OF HV- AND MV-ORIGIN INTERRUPTION EVENTS IS VERIFIED DURING A SINGLE AUDIT. THE AUDIT IS CONCLUDED WITH A REPORT THAT CAN BE OBTAINED BY THE RELEVANT UTILITY ON REQUEST.

28 CONTROL OF CONTINUITY OF SUPPLY Indexes for audit evaluation AEEG HAS DEFINED THREE INDEXES TO EVALUATE THE AUDITS, BASED ON THE FIGURES REFERRED TO THE INTERRUPTIONS SAMPLED DURING EACH AUDIT. ACCURACY INDEX, WHICH MEASURES WHETHER ALL EVENTS HAVE BEEN ACTUALLY RECORDED: MUST BE >90% PRECISION INDEX, THAT MEASURES THE APPROXIMATION OF CUSTOMER MINUTES LOST: MUST BE < 3% (ABSOLUTE VALUE) CORRECTNESS INDEX, WHICH VERIFIES WHETHER INTERRUPTIONS DUE TO ACTS OF GOD AND USERS /THIRD PARTIES RESPONSIBILITIES HAVE BEEN ADEQUATELY DOCUMENTED: SHALL ASSUME VALUES THAT ASSURE THAT INCORRECTLY EXCLUDED INTERRUPTIONS DO NOT OVERPASS THE 3% (IN CUSTOMER MINUTES LOST) OF DECLARED INDICATOR USED FOR REGULATION

29 CONTROL OF CONTINUITY OF SUPPLY Effects of audits SHOULD ONE OF THE THREE CONDITIONS BE NOT RESPECTED, THE CONTINUITY DATA DECLARED BY THE DISTRIBUTOR ARE CONSIDERED NOT VALID NON VALID DATA ARE SUBSTITUTED WITH A PRESUMED VALUE CALCULATED BY THE AEEG ON THE BASE OF THE AUDIT RESULTS. NO INCENTIVE IS RECOGNISED IN CASE OF NOT VALID DATA THE PRESUMED VALUE IS EQUAL TO: Apres = A + ( 1 IC ) B (1 IP ) WHERE A ARE THE DECLARED CUSTOMER MINUTES LOST (CML) FOR REGULATION, B ARE THE DECLARED CML EXCLUDED, IC IS THE CORRECTNESS INDEX AND IP IS THE PRECISION INDEX

30 WRAP-UP CUSTOMERS REQUIRE EVEN BETTER QUALITY OF SERVICE DISTRIBUTION UTILITIES MUST CONTINUOUSLY IMPROVE REGULATORY AUTHORITY SETS IMPROVEMENT TARGETS IN ORDER TO MEASURE ACTUAL IMPROVEMENT, INTERRUPTION OUT OF CONTROL OF THE DISTRIBUTOR MUST BE EXCLUDED (FORCE MAJEURE, USERS /THIRD PARTIES ACT, EHV-HV ORIGIN) DOCUMENTION IS NEEDED FOR EXCLUDED INTERRUPTIONS INCENTIVE AND PENALTIES ARE CALCULATED ON CONTINUITY LEVELS NET OF EXCLUDED INTERRUPTIONS Q-ADJUSTEMENT IS USED TO COLLECT FROM TARIFFS THE DIFFERENCE BETWEEN INCENTIVES AND PENALTIES AUTHORITY CONTROLS THROUGH AUDITS IN FIELD AND THREE INDEXES (ACCURACY, PRECISION, CORRECTNESS) DISTRIBUTORS THAT SUBMIT NOT VALID DATA LOSE INCENTIVES TOTAL CML REDUCED 43% FROM 1999 TO 2002 COST ABOUT 3 EURO/CUSTOMER/YEAR IN THE PERIOD

31 Research database continuity electricity

32 FOR FURTHER INFORMATION Continuity code: rule n. 155/02 Research database continuity electricity