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This paper provides an appraisal of what regulators need to consider in establishing an effective voltage quality regulatory framework for distribution networks. In particular, the paper considers the regulation of five voltage quality dimensions: short interruptions, voltage dips, flicker, supply voltage variation, and harmonic distortions. The paper assesses the most appropriate regulatory control...
Both theory and practice suggest that incentive price regulation, without additional quality measures, eventually leads to quality degradation: the strong cost reduction incentives (driven by the profit incentive) have the perverse effect of inducing suh-standard quality levels. Thus, under economic regulation models using incentive schemes, quality regulation becomes imperative. This paper describes...
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