Scandinavian Working Papers in Economics
Working Papers,
Copenhagen Business School, Department of Economics
No 7-2020: Managing Power Supply Interruptions: A Bottom-Up Spatial (Frontier) Model with an Application to a Spanish Electricity Network
Pablo Argüelles and Luis Orea ()
Additional contact information
Pablo Argüelles: EDP España and University of Oviedo
Luis Orea: University of Oviedo and Oviedo Efficiency Group, Postal: School of Business and Economics, Department of Economics, Avda. Del Cristo, s/n. 33006, Oviedo, Spain
Abstract: In December 2013 a new electricity law was approved in Spain as part of an electricity market reform including a new remuneration scheme for distribution companies. This remuneration scheme was updated in December 2019 and the new regulatory framework introduced a series of relevant modifications that aim to encourage the regulated firms to reduce their power supply interruptions using a benchmarking approach. While some managerial decisions can prevent electricity power supply interruptions, other managerial decisions are more oriented to mitigate the consequences of these interruptions. This paper examines the second type of decisions using a unique dataset on the power supply interruptions of a Spanish distribution company network between 2013 and 2019. We focus on the effect of grid automatization on the restoration times, the relative efficiency of the maintenance staff, and the importance of its location. We combine a bottom-up spatial model and a stochastic frontier model to examine respectively external and internal power supply interruptions at municipal level. This model resembles the conventional spatial autoregressive models but differs from them in several important aspects.
Keywords: Electricity distribution; Power supply interruptions; Spatial econometrics; Frontier models
25 pages, March 26, 2020
Full text files
9806Full text
- Copenhagen Business School, Department of Economics
- Ordering Working Papers
- Home page for this series
Questions (including download problems) about the papers in this series should be directed to CBS Library Research Registration Team ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:cbsnow:2020_007This page generated on 2024-09-13 22:14:19.