Regulation of Electricity Supply Quality as a Necessary Function in the Regulation of Monopoly Services

Abstract

The article analyzes the shortcomings of price regulation as a function in the regulation of the monopoly activity of electricity distribution that does not include the quality regulation of electricity supply. Also analyzed is a conceptual model for launching an electricity supply quality regulation system with special emphasis on the reliability of supply as the crucial aspect of supply quality regulation. Developing the continuity of supply regulation will ultimately facilitate the introduction of an integrated regulation model comprising electricity price and electricity supply quality. The article also describes the experiences of the Hungarian regulatory authority in stepby- step introduction of price regulation and in integration of supply quality into the price regulation model.