Regulation
benchmarking of the power distribution network operators
Project name: Consulting in relation to the further development of regulatory benchmarking of the power distribution network operators
Commissioned by: Oesterreichs Energie
Timeframe: 2022-2022
Contact: Christian Zimmer and Bernd Tersteegen
Revenue regulation for Austrian electricity distribution network operators is based on an that comprises various instruments. Before the start of each regulatory period, an efficiency comparison (benchmarking) is carried out for the almost 40 largest grid operators, the results of which are used to determine the revenue paths for the upcoming regulatory period. Over the course of a regulatory period, the revenue targets are adjusted to current developments, for example using indicators for operating expenditures that reflect the cost effects of various drivers that the grid operators have little or no control over. These and other instruments are reviewed prior to each regulatory period in a consultation process between the regulatory authority Energie-Control Austria (ECA) and the industry, represented by its association Oesterreichs Energie, adjusted as necessary and designed and parameterised on the basis of current data.
Vergleich der Benchmarking-Ergebnisse für österreichische Strom-VNB für die 4. und 5 Regulierungsperiode; jeweils separat absteigend sortiert [1]
Consentec has been supporting the grid operators and their association in these consultation processes for many years. In this project, which related to the preparation of the fifth regulatory period, the focus was on conceptual and quantitative analyses of the benchmarking-model and the further development of the operating cost factors. This enabled the industry to introduce and substantiate proposals for improvements to the regulatory system in the negotiations with the regulatory authority and the other legal parties involved in the process.
In addition, Consentec acted as an intermediary between the regulatory authority and the industry by confirming the mathematical accuracy of the efficiency values determined by ECA on the basis of the data provided by the network operators and the ECA in agreement with the industry.
The results were presented and discussed at the conference “Regulierung ab 2024” organized by Oesterreichs Energie.