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Third Benchmarking Report on Quality of Electricity Supply

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cause, however, Ofgem has defined a mechanism which allows companies to ask for the impact<strong>of</strong> a small number <strong>of</strong> excepti<strong>on</strong>al events to be excluded from their performance (see Additi<strong>on</strong>alInformati<strong>on</strong> 1.6). Similarly, in Hungary and in the Czech Republic excepti<strong>on</strong>al events can be recognizedby a public authority.ADDITIONAL INFORMATION 1.6 – IDENTIFYING EXCEPTIONAL EVENTSIn Great Britain distributi<strong>on</strong> companies must make a claim within 14 days <strong>of</strong> the end <strong>of</strong> an excepti<strong>on</strong>alevent. For event to be eligible it must satisfy certain thresholds.1.1 Severe weather c<strong>on</strong>diti<strong>on</strong>sA weather event is classed as excepti<strong>on</strong>al if it causes 8 or more times the daily mean number <strong>of</strong>faults at higher voltage (i.e. at MV and above) in a 24 hour period. The full audited impact <strong>of</strong> theevent is then excluded under the interrupti<strong>on</strong> incentive scheme.The restorati<strong>on</strong> performance is then separately incentivised under the guaranteed standard forsupply restorati<strong>on</strong> in severe weather.1.2 Other eventsOther types <strong>of</strong> event will <strong>on</strong>ly be eligible for adjustment if they are outside the companies’ c<strong>on</strong>troland caused by some external factor. For example, this includes third-party damage such as vandalismor terrorism but would not include a failure <strong>of</strong> protecti<strong>on</strong> equipment or a fire at a substati<strong>on</strong>.Only interrupti<strong>on</strong>s above the following absolute thresholds are excluded from the performance:· 25,000 customers affected (approx 1.5 CI for an average company)2 milli<strong>on</strong> customer minutes lost (approx 1 CML)·For other events Ofgem’s auditors will review the extent to which the company has taken appropriatemitigating acti<strong>on</strong>s. If the company has performed appropriately the full impact above thethreshold will be removed. Otherwise a reduced adjustment will be applied.In additi<strong>on</strong> to the eight countries menti<strong>on</strong>ed above that have full recording protocols, there isanother group <strong>of</strong> five countries (Belgium-Wall<strong>on</strong>ia, Est<strong>on</strong>ia, Finland, France, and Lithuania) wherea definiti<strong>on</strong> is given in the regulati<strong>on</strong>s, <strong>of</strong> circumstances where the company is not c<strong>on</strong>sideredresp<strong>on</strong>sible for the interrupti<strong>on</strong> (see Annex 2 – Force Majeure). It is important to note that thesecountries have all introduced c<strong>on</strong>tinuity standards (at single customer level) and therefore needexclusi<strong>on</strong>s where an event is outside the company’s c<strong>on</strong>trol.Finally it should be noted that in Belgium-Wall<strong>on</strong>ia, Finland, Lithuania, and France interrupti<strong>on</strong>s arerecorded with an indicati<strong>on</strong> <strong>of</strong> causes. In Lithuania, where the regulator had already planned, whendefining the causes <strong>of</strong> interrupti<strong>on</strong>, to introduce an incentive/penalty scheme in the near future, theattributi<strong>on</strong> <strong>of</strong> resp<strong>on</strong>sibility is taken into account; in the other countries <strong>of</strong> this latter group the list <strong>of</strong>causes is mostly technical and does not necessarily identify the resp<strong>on</strong>sible party.15<str<strong>on</strong>g>Third</str<strong>on</strong>g> <str<strong>on</strong>g>Benchmarking</str<strong>on</strong>g> <str<strong>on</strong>g>Report</str<strong>on</strong>g> <strong>on</strong> <strong>Quality</strong> <strong>of</strong> <strong>Electricity</strong> <strong>Supply</strong> – 2005 · Chapter 1

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