Reward-Penalty Scheme for Power Distribution Companies

Abstract

In this research, we propose three Reward-Penalty algorithms, to improve the reliability of power distribution companies. The significance of this research, lies in encouraging power distribution companies, to maintain, or even improve, customer service and satisfaction, by developing the Performance Regulatory Reward-Penalty models. These models are designed to place little administrative burden, on either the regulators, or the power distribution companies, whilst providing valuable information, which will prevent degradation of service reliability.