DTe: Measures to Improve Reliability of the Grids

Research carried out by the Office for Energy Regulation (DTe) shows that electricity companies do not include all power failures in their outage reports. As a result, the annual duration of outages is higher than the duration of outages stated in the present reports of the electricity companies. The Office for Energy Regulation (DTe) made this statement in a letter to Mr Wijn, the Secretary of State for Economic Affairs. On 15 January 2003, the Secretary of State asked DTe to advise him on the registration of outages in the electricity market and on guaranteeing the reliability of the electricity grids and gas networks.

In its letter, DTe makes a number of recommendations aimed at ensuring the proper registration of outages in the future and guaranteeing the reliability of the electricity grids and gas networks. With regard to the registration of outages, DTe recommends setting up a national complaints centre which customers can notify of electricity and gas outages. The advantage of a complaints centre such as this for customers will be that they will be able to report outages by calling a single telephone number. This complaints centre will serve as an additional check that outages are registered correctly by electricity grid and gas network managers. In addition, DTe is in favour of an obligatory certification system to ensure that all the electricity grid and gas network managers register and report outages correctly. DTe also recommends accelerating the reporting process. At present, the electricity grid and gas network managers have to submit their annual reports to DTe at the latest by 1 November of the following year. DTe is keen to bring this date forward to 15 February to make more effective regulation possible.

With regard to the reliability of the grids and networks, DTe advises the Secretary of State to introduce minimum standards which set out the level of reliability to which an individual customer is entitled. This recommendation also means that the grid or network manager is obliged to take measures and to pay compensation to customers if the grid or network manager does not achieve the minimum standard. In addition to a certification scheme for the registration of outages, DTe proposes an obligatory system of certification of grid and network management. Certification means that an independent expert determines whether the grid or network manager adheres to the standards and procedures applicable to grid or network management. The aim of this is also to maintain the reliability of the electricity grids and gas networks in the long-term.

In its letter, DTe also discusses the system of quality regulation introduced in November 2002, which will apply from the start of the second regulatory period. With the help of this system, DTe will provide regional grid and network managers with an incentive to strike an optimal balance with regard to the cost incurred or investments needed to increase the reliability of their electricity grids or gas networks. This will enable consumers to benefit from fewer (long) power failures and lower cost of outages.

DTe's letter to Secretary of State Wijn, containing recommendations regarding the registration of outages and the reliability of the electricity grids and gas networks, can be obtained as of today from DTe's website.