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Article
Publication date: 22 May 2007

Anna Tanskanen, Ari Jantunen, Juha‐Matti Saksa, Jarmo Partanen and Jukka Bergman

The purpose of this paper is to shed light on the governance choices of firms operating in the electricity distribution network operation activities. The study aims to consider…

Abstract

Purpose

The purpose of this paper is to shed light on the governance choices of firms operating in the electricity distribution network operation activities. The study aims to consider both costs and benefits of different governance choices and to examine which of the activities could be outsourced and which it is preferable to keep in‐house. The study makes a distinction between the electricity retail services and electricity distribution network activities and focuses solely on the network business.

Design/methodology/approach

The study is based on a four‐staged process and utilizes the extended transaction cost economics as a theoretical framework. The research design includes in‐depth interviews with ten managers and CEOs of Finnish electrical utilities, analysis and interpretation of findings and verification of results by electricity network business experts.

Findings

The extended transactional cost economics theoretical framework and research design support analysis of governance structures and make‐or‐buy decisions. The findings demonstrate that the activities of the companies operating in the electricity distribution business differ in terms of potential long‐term efficiency effects when sourced from the market or made in‐house. The determinants of the governance choice depend partly on the nature and strategic importance of the activity in question. Operations management seems to be a function to be kept in‐house in the current market situation, whereas there are clear potential benefits that can be obtained by outsourcing field work activities. The results related to the governance of control room activities are more complicated.

Originality/value

This study brings not only the transaction costs but also the benefit‐side and the dynamic aspects of boundary choices under assessment.

Details

International Journal of Energy Sector Management, vol. 1 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 12 March 2021

Loai Ali Zeenalabden Ali Alsaid

This study seeks to explore the powerful role(s) of institutionalised performance measurement systems or metrics in smart city governance in a politically and militarily sensitive…

Abstract

Purpose

This study seeks to explore the powerful role(s) of institutionalised performance measurement systems or metrics in smart city governance in a politically and militarily sensitive developing country.

Design/methodology/approach

This study extends the application and contribution of a multi-level institutional framework to previous management accounting literature on the potential relationship between performance measurement and smart city governance. The value of utilising a multi-level framework is to broaden and deepen theoretical analyses about this relationship to include the effect of political pressure from the military regime at the macro level on the institutionalisation of a performance measurement system at the micro-organisational level. Taking the New Cairo city council smart electricity networks project (Egypt) as an interpretive qualitative single-case study, data collection methods included semi-structured interviews, direct observations and documentary readings.

Findings

Performance measurement systems or metrics, especially in politically and militarily sensitive smart cities, constitutes a process of cascading (macro-micro) institutionalisation that is closely linked to sustainable developments taking place in the wider arena of urban policies. Going a step further, accounting-based performance metrics, arising from political and military pressures towards public-private collaborations, contribute to smart city management and accountability (governance). Institutionalised measurement systems or performance metrics play a powerful accounting role(s) in shaping and reshaping political decisions and military actions in the city council.

Originality/value

Theoretically, this study goes beyond the cascading institutionalisation process by arguing for the powerful role(s) of institutionalised accounting and performance measurement systems in smart city decision-making and governance. Empirically, it enriches previous literature with a case study of a developing Arab Spring country, characterised by an emerging economy, political sensitivity and military engagement, rather than developed and more stable countries that have been thoroughly investigated. It is also among the first politically engaged accounting case studies to highlight public-private collaborations as a recent reform in public sector governance and accountability.

Details

Journal of Accounting in Emerging Economies, vol. 11 no. 3
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 16 August 2021

Lakshminarayana Kompella

This paper aims to explain transitions in a socio-technical system characterized by non-economic entities that influence economic activity, i.e. embeddedness and coalitions. The…

Abstract

Purpose

This paper aims to explain transitions in a socio-technical system characterized by non-economic entities that influence economic activity, i.e. embeddedness and coalitions. The selected socio-technical system is an Indian electric network with an interventionist policy. Its embeddedness and coalitions drive the transition. The insights from such analysis expand socio-technical transition theory and provide valuable insights to practitioners in their policymaking.

Design/methodology/approach

The authors need to observe the effects of non-economic institutions in their setting. Moreover, in India, the regional policies influence decision-making; therefore, selected two Indian states. The two Indian states, along with their non-economic entities, provided diverse analytic and heuristic views.

Findings

The findings show that coalitions, with their embeddedness in the absence of any mediating policy systems, act as external pressures and influence innovation and the socio-technical system’s transition trajectory. Their coalitions’ embeddedness follows a shaping, not selection logic. Thereby influence innovations in cumulating as stable designs. Such an approach provides benefits in the short-term but not in the long-term.

Research limitations/implications

The study selected two states and examined two of the four trajectories. By considering other states, the authors can obtain more renewable energy investments and further insights into the transformational trajectory.

Practical implications

The study highlights the coalition dynamics specific to the Indian electric power network and its transition trajectories. The non-economic entities influenced transition trajectories, innovation and policymaking of the socio-technical system.

Originality/value

The study expands the socio-technical transition theory by including embeddedness. The embeddedness brings a shaping logic instead of a selection logic.

Details

International Journal of Energy Sector Management, vol. 16 no. 3
Type: Research Article
ISSN: 1750-6220

Keywords

Abstract

Details

Changes in European Energy Markets
Type: Book
ISBN: 978-1-83909-110-0

Article
Publication date: 20 November 2009

Jukka Lassila, Anna Tanskanen, Juha Lohjala and Jarmo Partanen

Based on literature and an empirical case, the purpose of this paper is to present a framework for decision‐making in utilities where unbundling considerations are taking place…

Abstract

Purpose

Based on literature and an empirical case, the purpose of this paper is to present a framework for decision‐making in utilities where unbundling considerations are taking place. The paper analyses the implications of splitting long‐term network planning activity from the organization responsible for short‐term network operation activities.

Design/methodology/approach

The proposed framework includes an analysis of impacts of external forces, set‐up of common targets and performance models, and alignment of responsibilities in the new organization. The empirical results and validation of the proposed framework is performed by an electric utility, where legal unbundling of activities has taken place; the study includes expert interviews and theoretical analysis.

Findings

Colliding interests in the new business model can be avoided if economic and technical targets are mainly set by the regulator for both network development and operation activities.

Research limitations/implications

The results are based on internal re‐organization; a complementary study on re‐organizing network business activities to an external service provider could give information about the generalizability of the findings.

Practical implications

Application of the proposed framework for decision‐making and lessons learned can support electric utilities when planning for unbundling and strategic target‐setting in the unbundled business model.

Originality/value

The study presents experiences of re‐organized network business activities in a pioneering market area with a long experience of outsourcing. The detailed analysis of internal re‐organization within one electric utility can facilitate further restructuring phases.

Details

International Journal of Energy Sector Management, vol. 3 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 11 September 2018

Hannu Makkonen, Sini Nordberg-Davies and Rami Olkkonen

The article aims to further understanding of purchasing practices in post-outsourcing buyer–supplier relationships, and it provides a holistic approach and onceptualizations with…

Abstract

Purpose

The article aims to further understanding of purchasing practices in post-outsourcing buyer–supplier relationships, and it provides a holistic approach and onceptualizations with which to balance the perspectives of purchasing as an intra-firm operational function and as a strategic activity embedded in relationship and network management.

Design/methodology/approach

The research is based on an inductive-oriented case study. The data comprised 61 thematic interviews conducted at 17 buyer companies (electricity distribution companies), 11 service supplier companies and six third-party organizations. The case features a setting in which a growing number of electricity distribution companies have outsourced operational functions regarding network construction, maintenance and fault repair and purchased these services from service suppliers representing a developing service market.

Findings

The study explicates the role of purchasing as an element with the most impact on post-outsourcing buyer–supplier relationship outcomes and development. The performance of the buyer–supplier relationship either accelerates or inhibits the new service supplier’s entry to the field and motivates or demotivates the electricity distribution companies to outsource their activities. This mechanism links to the respective development of supplier markets and buyer industry transformation.

Originality/value

The focal study provides a holistic approach and conceptualizations with which to balance the perspectives of purchasing as an intra-firm operational function and as a strategic activity embedded in relationship and network management. In particular, the study provides conceptual development on purchasing practices in post-outsourcing relationships and concrete managerial implications for dealing with such circumstances. The focal study includes case notes that facilitate using the study for teaching purposes.

Details

Journal of Business & Industrial Marketing, vol. 33 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 7 September 2012

Ashish Ranjan Hota, Prabodh Bajpai and Dilip Kumar Pratihar

The purpose of this paper is to introduce a neural network‐based market agent, which develops optimal bidding strategies for a power generating company (Genco) in a day‐ahead…

Abstract

Purpose

The purpose of this paper is to introduce a neural network‐based market agent, which develops optimal bidding strategies for a power generating company (Genco) in a day‐ahead electricity market.

Design/methodology/approach

The problem of finding optimal bidding strategy for a Genco is formulated as a two‐level optimization problem. At the top level, the Genco aims at maximizing its total daily profit, and at the bottom level, the independent system operator obtains the power dispatch quantity for each market participant with the objective of maximizing the social welfare. The neural network is trained using a particle swarm optimization (PSO) algorithm with the objective of maximizing daily profit for the Genco.

Findings

The effectiveness of the proposed approach is established through several case studies on the benchmark IEEE 30‐bus test system for the day‐ahead market, with an hourly clearing mechanism and dynamically changing demand profile. Both block bidding and linear supply function bidding are considered for the Gencos and the variation of optimal bidding strategy with the change in demand is investigated. The performance is also evaluated in the context of the Brazilian electricity market with real market data and compared with the other methods reported in the literature.

Practical implications

Strategic bidding is a peculiar phenomenon observed in an oligopolistic electricity market and has several implications on policy making and mechanism design. In this work, the transmission line constraints and demand side bidding are taken into account for a more realistic simulation.

Originality/value

To the best of the authors' knowledge, this paper has introduced, for the first time, a neural network‐based market agent to develop optimal bidding strategies of a Genco in an electricity market. Simulation results obtained from the IEEE 30‐bus test system and the Brazilian electricity market demonstrate the superiority of the proposed approach, as compared to the conventional PSO‐based method and the genetic fuzzy rule‐based system approach, respectively.

Article
Publication date: 27 February 2009

Vinh Sum Chau

The purpose of this paper is to review the evolution and development of customer service performance measures in the electricity sector since privatization in 1989, and then…

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Abstract

Purpose

The purpose of this paper is to review the evolution and development of customer service performance measures in the electricity sector since privatization in 1989, and then examine the impact of a specific recent energy regulatory requirement (known as information and incentives project (IIP)) on the organizational management of an exemplar electricity distribution company. Also discussed is how the sector has tried to learn from benchmarks from a number of such literary disciplines as economics, marketing service quality, and total quality management.

Design/methodology/approach

The research first presents a survey of the historical development of performance standards based on archival documentation. It is then augmented by the employment of a longitudinal “tracer study”, involving the isolation and firsthand real time qualitative observations of a company's key strategic and operational activities, to understand how they related to the other organizational phenomena at large. This process spanned an investigative period of two years.

Findings

The paper finds that much of the early standards used in electricity immediately after the sector's privatization rested much on those in the water and gas safety sectors, which themselves were then admittedly inadequate in UK. The IIP, a complementary set of service quality standards, worked on these early problems, but the implementation of the new scheme proved problematic and warranted major organizational reengineering, as shown in the exemplar company, ElectriCo. IIP has impacted on organizational management mostly in the areas of: higher‐level strategic change, causing noticeable internal confusion during strategic transitions, building a performance management system, improvements in performance data, and establishing more effective ways for management.

Research limitations/implications

While the case example used in the research is a regional monopoly and is a good representation of the context in which the service standards operate, the findings are limited to the one company. It is a UK specific context without international comparison.

Originality/value

The research has combined archival research with an innovative firsthand methodological approach (tracer studies). Its value is in how the story of service standards in electricity (and specifically distribution) has been augmented from the early customer service standards to the most recent IIP considerations. It also looks from within the company, which has been missing in longstanding research in the more traditional disciplines such as economics.

Details

Benchmarking: An International Journal, vol. 16 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 7 September 2012

Juha Haakana, Jukka Lassila, Tero Kaipia, Jarmo Partanen, Juha Lohjala and Hanna Niemelä

Underground cabling has become a true alternative in construction of electricity distribution networks, even in rural areas. The increasing amount of underground installations…

Abstract

Purpose

Underground cabling has become a true alternative in construction of electricity distribution networks, even in rural areas. The increasing amount of underground installations requires strategic work that helps to define the most profitable cabling targets. The purpose of this paper is to introduce a methodology to consider the underground cabling process.

Design/methodology/approach

The paper proposes a cabling concept that covers the issues on how cabling should be carried out. The analysis is based on techno‐economic and reliability analyses. The methodology consists of several steps that together constitute the concept.

Findings

The underground cabling concept comprises several steps that can be simplified into questions: where, what, when and how the network cabling process is carried out. The analysis of these questions and the related features of the network show that different approaches to the renovation can cause significant differences in profitability between the renovation strategies.

Research limitations/implications

The underground cabling concept provides a method to analyse the cabling process, and it contains several alternatives for applying the concept. Thus, the applicability of a certain method depends on the network and the objectives of the distribution system operator.

Practical implications

Renovation planning of the network has become common in distribution companies. Traditionally, ageing of the network has been the driver for the renovation. However, in the future, the scope of renovation planning should also include other renovation drivers, such as reliability.

Originality/value

The methodology proposed in the paper can be applied in the renovation and development process of distribution networks. The results are universal in the electricity distribution.

Details

International Journal of Energy Sector Management, vol. 6 no. 3
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 15 November 2021

Eduardo Krawietz Ramos, Rosa María Aguilar Chinea and Pedro Juan Baquero Pérez

This paper aims to study the competition problems and market failures in the Canary Islands and propose an alternative management model for the telecommunication transmission…

Abstract

Purpose

This paper aims to study the competition problems and market failures in the Canary Islands and propose an alternative management model for the telecommunication transmission network. This model is based on a wholesale-only open-access transmission network, available to all the retail service providers of this region, and managed by a unique entity subject to regulation with cost-based prices. The proposal hopefully will help to debate about the implementation of certain regulatory models in the network industries, concerning telecommunication submarine cables connecting archipelagos.

Design/methodology/approach

An empirical approach has been used, based on the observation and analysis of the regulatory policies applied to the wholesale transmission networks in the Canary Islands, Azores and Madeira archipelagos.

Findings

Results show a persistent margin squeeze situation on the retail broadband market in the Canary Islands, due to the pricing strategy on the Spanish mainland-Canaries wholesale market, which is, in turn, delaying the entry of alternatives and the level of development and efficiency of competition. The risk of duopoly collusion is also present on this wholesale market. Additionally, public aids will be needed to replace the systems connecting with the non-capital islands and to provide redundancy to El Hierro. The alternative proposal might help preventing the above. Eventually, several insights are considered for further investigation.

Originality/value

Little attention has been paid to this topic in the literature, regarding the analysis of regulatory policies applied over fiber optic submarine cable infrastructures in fragmented territories like archipelagos. Consequently, an empirical analysis has been accomplished to emphasize this research work, based on the regulatory policies adopted.

Details

Digital Policy, Regulation and Governance, vol. 23 no. 6
Type: Research Article
ISSN: 2398-5038

Keywords

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