SERVICE QUALITY REGULATION IN ELECTRICITY DISTRIBUTION


BAĞDADİOĞLU N., Senyucel O.

6th International Scientific Conference Business and Management 2010, Vilnius, Lithuania, 13 - 14 May 2010, pp.776-777 identifier

  • Publication Type: Conference Paper / Full Text
  • Doi Number: 10.3846/bm.2010.102
  • City: Vilnius
  • Country: Lithuania
  • Page Numbers: pp.776-777

Abstract

As an accession country Turkey is obliged to follow the requirements of European Union Energy Acquis and announce how performance of electricity distribution companies will be compared during regulatory evaluation. The sector regulator, the Energy Market Regulatory Authority, has not announced a comparative regulatory framework yet. Anyhow the recent blackouts in 13 out of 81 provinces in Turkey necessitate the inclusion of service quality measures in such regulatory comparison. The main goal of this paper is to observe (amongst other important variables, such as, company size, cost of electricity distribution losses and illegal usage) the significance of service quality measures in likely regulatory design of electricity distribution in Turkey by applying the Stochastic Frontier Analysis to the balanced data of 2002-2007. The results strongly imply that, besides geographical conditions and village density, the incorporation of service quality measures in efficiency model has significant effect upon performance based regulation of electricity distribution.