The Network Performance Assessment Model as a Regulatory Tool – Focusing on Objectives and Goals

The deregulation, or re-regulation, of the electricity markets, has lead to a search for methods to supervise the remaining monopolies of electricity distribution. In Sweden the Network Performance Assessment Model (NPAM) is being implemented, affecting primarily the local distribution utilities. For the NPAM and new regulation process several goals and objectives can be identified. In the paper the two main objectives, creating a situation resembling the conditions on a competitive market and establishing self-regulating utilities, are analyzed. The analysis focuses on central issues needed to be addressed in order to be able fulfill the objectives. Furthermore, one of the particular goals is analyzed in more detail. This is the goal to establish an efficient level of availability in the networks, e.g. a goal related to the quality of supply. Both how the goal is intended to be achieved in the NPAM is discussed as well as problems related to realizing this. The research presented is part of ongoing research projects at the Competence Center for Power Engineering at the Royal Institute of Technology in Stockholm.