Regional Differences in Economic Impacts of Power Outages in Finland

Abstract

Estimation of the worth of continuity of electricity supply is of interest of industry, authorities and research society. There are numerous methods to calculate the Customer Interruption Costs (CICs). Each method has its advantages and disadvantages. This paper approaches the problem from Distribution System Operators' (DSOs) point of view and adopts two existing analytical models. One model is used by the Finnish Energy Market Authority and the second one was proposed by the authors at a previous study. The model suggested by the authors as an alternative to the one used by the Finnish Energy Market Authority proposes a simple and straightforward methodology which will provide credible and objective estimations by only utilizing publicly available analytical data. We made use of cost and reliability indices data of 78 DSOs in Finland from the year 2016. In addition to cost estimations, this paper highlights regional differences in CIC estimations in different parts of Finland and critically overviews the existing standard customer compensation scheme in Finland.