Electrokit | IADB

Regulatory framework Quality indicators selection and standardization

Quality indicators selection and standardization

Appropriate indicators that allow  for  a  proper tracking  and  control of  quality  evolution  over  time must  be defined. The commonly used indicators that have already been mentioned (SAIDI, SAIFI, etc.) serve as a reference . Even though the use of diverse quality indicators within distributors’ operation for management and planning purposes is a common practice and may already be in place , the definition of common and standardized indicators  within  a  particular  country  or  regulatory  framework  allows:  (i) for benchmarking  and  performance  comparison  among  peers;  (ii) to incorporate specific criteria in the indicators’ calculation that may be relevant within a particular context ; (iii) to define mid to long term policy objectives; and (i v ) to calibrate and track  performance  for  the  application  of  financial  incentives within  a  common regulatory framework.

Performance standards

Refers  to  the  level of quality  a  company  (or  a  group  of companies) is expected and/or required to provide. The definition of performance standards must take into account conditions that are inhe rent to each system ( i.e., topology, weather phenomena, etc. ) and can sough to be achieved gradually over time.

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Public database and end-user information

It is especially important that  the regulatory or control authority establishes a periodic public information system , and the obligation to inform in the monthly billing the quality that is required , as well as the one that is being supplied. This incentivizes the distributor to im prove results , provide transparency and enable follow - up by consumers 

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Financial incentives

Distributors may receive a positive, or negative, incentive that adds, or subtracts, to their income depending on service performance. For example, performing abov e the required standard may allow for an increase in the distributor’s remuneration. I ncentives can be applied through the correct definition of quality indicators and performance standards, and the ir proper calibration ( i.e., positive and negative incentives must be aligned with the economic impact an increase or decrease in quality may represent).

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