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The network performance assessment model
KTH, Superseded Departments, Electrical Systems.
2004 (English)Licentiate thesis, comprehensive summary (Other scientific)
Abstract [en]

The electricity distribution in Sweden is experiencing aconsiderable change in conditions by the radical change inregulation policy. The Swedish Energy Agency(Energimyndigheten) is introducing a new regulatory model, theNetwork Performance Assessment Model, as the main tool forsupervising the natural monopolies of local electricitydistribution. The new model has interesting and far-reachingconsequences for the involved parties.

This thesis investigates the implications of the newregulation and the regulatory tool, in particularly related toIT-investments evaluations in the distribution utilities. Intoday’s utilities, IT-systems are often a vital part ofoperations, ranging from e.g. real-time monitoring andcontrolling of the network to various administrative tasks.Considerable amounts of money are spent on investments toenhance and maintain these IT-systems. The changed regulationand the new regulatory model put a focus, more than ever, onefficient use of utilities’resources, implying a need forsuitable methods to evaluate ITinvestments.

In the thesis, the new regulation is described, inparticular the new regulatory model. The model is presented andcentral implications are identified, e.g. in terms of newrequirements put on the utilities and general businessconsequences. As stated, the focus is on implications relatedto IT-systems and investments in these systems.

Furthermore, a wide range of IT-investment evaluationmethods are presented and categorized in the thesis, focusingon IT-investment appraisal techniques. The categories rangesfrom methods only considering cash flows of investments to moreelaborate methods, e.g. for considering behavioral sciencesaspects. The thesis outlines and presents categories of methodsas well as examples of individual methods.

In the final part of the thesis, suitable IT-investmentevaluation methods, given the implications of the newregulation, are discussed. The implications include both directbusiness related aspects as well as more technical issuesrelated to the IT-investments. It is also concluded that asuitable method need to incorporate both monetary consequencesof the investment as well as a limited number of non-monetary,related to the regulatory model.

Key words:Regulation of electricity distribution,IT-investment evaluation methods, Implications of monopolyregulation

Place, publisher, year, edition, pages
Stockholm: KTH , 2004. , p. x, 36
Series
Trita-ICS, ISSN 1104-3504 ; 0401
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering
Identifiers
URN: urn:nbn:se:kth:diva-1746OAI: oai:DiVA.org:kth-1746DiVA, id: diva2:7719
Note
QC 20100608Available from: 2004-06-29 Created: 2004-06-29 Last updated: 2012-03-20Bibliographically approved
List of papers
1. The Network Performance Assessment Model: A Review of theSwedish tool for Regulation
Open this publication in new window or tab >>The Network Performance Assessment Model: A Review of theSwedish tool for Regulation
2002 (English)In: Proceedings of the Fifth Nordic Distribution and Asset Management Conference, 2002Conference paper, Published paper (Other academic)
National Category
Engineering and Technology
Identifiers
urn:nbn:se:kth:diva-13247 (URN)
Conference
NORDAC 2002, Copenhagen, Denmark
Note
QC 20100608Available from: 2010-06-08 Created: 2010-06-08 Last updated: 2010-06-08Bibliographically approved
2. The challenge of regulating natural monopolies in electrical distribution: experiences from Sweden
Open this publication in new window or tab >>The challenge of regulating natural monopolies in electrical distribution: experiences from Sweden
2003 (English)In: Proceedings of the 17th International Conference and Exhibition of Electricity Distribution, 2003Conference paper, Published paper (Other academic)
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering
Identifiers
urn:nbn:se:kth:diva-13248 (URN)
Conference
CIRED 2003, Barcelona, Spain
Note
QC 20100608Available from: 2010-06-08 Created: 2010-06-08 Last updated: 2010-06-08Bibliographically approved
3. On IT investment evaluation methods
Open this publication in new window or tab >>On IT investment evaluation methods
2003 (English)Report (Other academic)
Place, publisher, year, edition, pages
Stockholm: KTH, 2003
Series
External Report ; 03:08
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering
Identifiers
urn:nbn:se:kth:diva-13249 (URN)
Note
QC 20100608Available from: 2010-06-08 Created: 2010-06-08 Last updated: 2010-06-08Bibliographically approved
4. Effect of new regulatory frameworks onutilities
Open this publication in new window or tab >>Effect of new regulatory frameworks onutilities
2004 (English)In: Proceedings of theInternational Conference on Maintenance Systems, 2004Conference paper, Published paper (Other academic)
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering
Identifiers
urn:nbn:se:kth:diva-13250 (URN)
Conference
ICOMS 2004, Sydney, Australia.
Note
QC 20100608Available from: 2010-06-08 Created: 2010-06-08 Last updated: 2010-06-08Bibliographically approved

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Citation style
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