Benchmarking and regulation: international electricity experience

Regulation and Measuring Cost-Efficiency with Panel Data Models: Application to Electricity Distribution Utilities

“…Main categories of incentivebased schemes used for electricity utilities are: price or revenue cap regulation schemes, sliding-scale rate of return, partial cost adjustment, menu of contracts, and yardstick regulation. 1 Jamasb and Pollitt (2001) provide an extensive survey of different regulation practices in electricity markets around the world. Virtually all the models used in practice, are based on benchmarking that is, measuring a company's efficiency against a reference performance.…”

Avaliação dos custos operacionais eficientes das empresas de transmissão do setor elétrico Brasileiro: uma proposta de adaptação do modelo dea adotado pela ANEEL

“…O uso destas técnicas já é bastante difundido entre os agentes reguladores do setor elétrico, em particular na regulação dos serviços de distribuição e transmissão de eletricidade, conforme mostra a pesquisa realizada por Jasmab & Pollit (2001).…”

Regulation of State-Owned and Privatized Utilities: Ukraine Electricity Distribution Company Performance*

“…The targeted line losses incentive (equation 1) provides a strong reward for firms that successfully address the problem caused by under-loading, deferred maintenance, and commercial losses (non-payments and theft); these are the main reasons for a more than twofold 5 Determining relative efficiency is a task taken on by regulators on a regular basis. A survey by Jamasb and Pollitt (2001) shows that more than twenty countries utilize benchmarking in regulation. They cite twenty-seven empirical studies that use comparative efficiency analysis to evaluate distribution utility performance.…”

“…The sample consists of 24 RECs, 1998RECs, -2002 According to a recent survey by Jamasb and Pollitt (2001), frontier analysis models for electricity distribution companies most frequently use the following as outputs: electricity delivered, number of customers and size of service area.…”

“…Following studies by Jamasb andPollitt (2001, 2003), we first consider a basic model with two inputs and two outputs (electricity delivered and number of customers). The inputs are network length and "operational costs" -operating costs plus capital elements (depreciation and repair costs).…”