AN APPLICATION OF INCENTIVE REGULATION OF SERVICE QUALITY IN THE TURKISH ELECTRICITY DISTRIBUTION SECTOR
Abstract
The possibility of reducing costs at the expense of avoiding the needed
capital investments and thus the service quality under the Price or Revenue Cap
Regulation Scheme has led many countries to include service quality measures
into incentive based regulation of electricity distribution. Among those are the
countries of the European Union, which has an ambitious plan of establishing
an electricity market by 2015 where all consumers are envisaged to be able to
choose their own electricity distributors. By including a reward/penalty
component into regulatory scheme the distribution companies are expected to
have an incentive to reduce the frequency and duration of electricity
interruptions for a reward of keeping more of revenue they earn by improving
their performances. Otherwise the distribution companies are penalized for
missing the service quality targets.
As an accession country negotiating membership conditions with the
European Union, Turkey is expected to revise her electricity regulation
framework accordingly since the electricity distribution companies are
envisaged to be regulated by a mixture of price and revenue cap scheme after
privatization. In fact the business service quality thresholds and penalties for
violations have been published in the Official Gazette in 12 September 2006
immediately after a power cut left 13 industrial and touristic provinces without
electricity for 6 hours in 1 July 2006. However, this directive did not include
any provision of penalty/reward for those electricity distribution companies with
worsening/improving service quality measures of frequency and duration of
power interruptions. This paper illustrates how the Turkish Energy Market
Regulatory Authority could include such a reward/penalty scheme into incentive
regulation to monitor and improve the service quality performances of
electricity distribution companies.
The illustration is an application of Data Envelopment Analysis, widely used
for this purpose, and based on 2004 data of 20 privatization candidates and one
private electricity distribution company. The electricity distribution companies
are expected to distribute the electricity demanded by minimizing their costs and
related inputs. Thus the input-based version of Data Envelopment Analysis is
employed to benchmark the distribution companies in terms of their capability
of reducing their total expenditure as well as the frequency and duration of
electricity interruptions while distributing electricity to their customers through
distribution networks. The 2004 data is particularly used to observe the
efficiency of the distribution companies at the time when the famous Electricity
Sector Reform and Privatisation Strategy Paper was published in Turkey. The
Strategy Paper has shown the commitment of Turkey to the electricity market
reform, and has determined the roadmap for privatization envisaged to be
completed by 2013. Meanwhile by using this old data it is hoped that the risks of
influencing the presently speeding up privatization process is minimized.
The results suggest that 13 out of 21 electricity distribution companies
should improve their service quality to avoid a penalty. The remaining eight
distribution companies may be awarded for being the best performer in meeting
the service quality measures. The oldest private distribution company the
Kayseri Electricity Distribution Company is among the best performers. The
distribution companies with the worst records are serving customers living in
the South-eastern Anatolia Region (the Dicle Electricity Distribution Company),
the Eastern Anatolia Region (the Aras Electricity Distribution Company and the
Vangölü Electricity Distribution Company) and Çukurova Region (the Toros
Electricity Distribution Company). Among the recently privatized distribution
companies, the Menderes Electricity Distribution Company and the Meram
Electricity Distribution Company are among the best service providers. It seems
that the BaĢkent Electricity Distribution Company was suffering from operating
at the wrong scale and the Sakarya Electricity Distribution Company was run
under incompetent management when the Strategy Paper was announced in
2004.
Abstract
Avrupa Birliği ülkelerinde yaygın olarak izlenen Fiyat ya da Gelir Sınırına Göre Düzenleme yaklaşımı altında dağıtım şirketlerinin sermaye yatırımlarını ihmal ederek maliyetlerini düşürmeye yönelmesi, düzenleme sürec ine hizmet kalitesi göstergelerinin dahil edilmesini zorunlu kılmıştır. 2013 ’e kadar özelleştirilmeleri öngörülen TEDAŞ’a ait dağıtım şirketlerinin fiyat ile gelir sınırı karışımı bir yaklaşımla düzenlenecek olması aday ülke konumundaki Türkiye’nin benzer bir yol izlemesini gerektirmektedir. 01 Temmuz 2006’da endüstriyel ve turistik 13 İlde altı saat süren elektrik kesintisinden hemen sonra 12 Eylül 2006’da ticari hizmet kalitesi eşik değerleri ile ihlal edilmeleri halinde ödenmesi gereken tazminatlar Resmi Gazete’de yayınlanmıştır. Ancak elektrik kesinti sayısı ve süresini arttırarak/düşürerek hizmet kalitesini kötüleştiren/iyileştiren dağıtım şirketlerini cezalandırmaya/ödüllendirmeye yönelik herhangi bir özendirici düzenleme yapılmamıştır. Çalışmamız, ödül/ceza sistemine dayalı böyle bir düzenleme yaklaşımı izlemek suretiyle Enerji Piyasası Düzenleme Kurumu ’nun hizmet kalitelerini iyileştirme yönünde dağıtım şirketlerini nasıl özendirebileceğini 2004 bilgilerine Veri Zarflama Analizi uygulayarak göstermektedir. Sonuçlara göre, 21 dağıtım şirketinden kötü hizmet veren 13 ’ünün cezalandırılması, iyi hizmet veren sekiz şirketin ise ödüllendirilmesi gerekmektedir.
Details
| Other ID | JA84BZ59GE |
|---|---|
| Journal Section | Articles |
| Authors | |
| Publication Date | June 1, 2009 |
| Published in Issue | Year 2009 Volume: 11 Issue: 1 |