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Article
Publication date: 14 September 2010

Virendra Ajodhia

Energy regulators applying price‐cap systems typically do not incorporate quality into the benchmarking process. The paper aims to develop a methodology for integrated…

Abstract

Purpose

Energy regulators applying price‐cap systems typically do not incorporate quality into the benchmarking process. The paper aims to develop a methodology for integrated cost‐quality benchmarking for electricity distribution networks.

Design/methodology/approach

Two basic models are developed namely a technical model which specifies quality as a minimising input factor, and a social cost model which measures the extent to which the provided quality level is optimal. The two models are applied to a sample of Dutch and UK firms.

Findings

The results suggest that integrated price‐quality benchmarking is an important regulatory asset but at the same time, its limitations should also be recognised.

Originality/value

Traditionally, benchmarking under price‐caps has been mostly restricted to the analysis in the area of costs. A truly integrated price‐quality benchmarking approach for electricity distribution networks is, however, lacking. This paper aims to fill this gap.

Details

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

Keywords

Article
Publication date: 11 April 2008

Steven Martina, Rudi Hakvoort and Virendra Ajodhia

One of the most pressing questions facing small‐island development states (SIDS) is the appropriate way in which to operate and manage their infrastructure industries. After all…

431

Abstract

Purpose

One of the most pressing questions facing small‐island development states (SIDS) is the appropriate way in which to operate and manage their infrastructure industries. After all SIDS are faced with high cost of infrastructure due to the narrow markets and diseconomies of scale and remoteness.

Design/methodology/approach

For small‐island utilities in the Caribbean region, a benchmark has been performed to demonstrate objectively how utilities cost, as well as their service quality, compare over time and with other utilities. About 15 utilities of 17 Caribbean countries were included in the benchmark. Based on these outcomes, the current efficiency and possible efficiency gains were determined (which may differ significantly from the current “best‐practice” of utilities in developed countries) which provide a basis to set targets that are achievable.

Findings

In this paper, the conducted Caribbean benchmark studies will be further elaborated and the applicability as management tool and regulatory tool to compare performance within the region will be assessed. One of the preliminary conclusions of the study is that the incentive‐based approaches adopted in many countries do not necessarily work within the context of SIDS (and their specific characteristics and limitations), so that a different regulatory model needs to be developed.

Research limitations/implications

The analysis was performed based on data of one year. Analysis based on multi‐year data can provide trends in efficiency and will identify the development of the utilities' performance. Cost data was not used in this analysis due to lack of availability. Also, inclusion of reliability data representing frequency of interruptions and duration of interruption in the analysis would provide a more holistic indication of efficiency.

Originality/value

The paper offers insight into the current restructuring of the electricity supply in the Caribbean region.

Details

International Journal of Energy Sector Management, vol. 2 no. 1
Type: Research Article
ISSN: 1750-6220

Keywords

Content available
Article
Publication date: 14 September 2010

Ali Emrouznejad

408

Abstract

Details

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

Content available
Article
Publication date: 23 November 2010

43

Abstract

Details

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

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