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Premium Quality Contracts: An investigation of the applicability of premium quality contracts in Sweden
Uppsala University, Disciplinary Domain of Science and Technology, Technology, Department of Engineering Sciences, Industrial Engineering & Management.
2016 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The dependency of electricity is constantly increasing in today’s society. It is therefore important that the supply of electricity is reliable. The reliability of the electricity can be defined as the quality of electricity supply. In order to ensure that the quality of electricity supply is good, it is regulated with for example guaranteed standards that are defined by regulatory authorities. Electricity customers that are sensitive to disturbances in the supply of electricity might, however, be interested in a customized quality of electricity supply. A regulatory tool used to meet individual customers quality of electricity supply needs, is a premium quality contract. A premium quality contract is an agreement between a network operator and a customer that requests customized quality of electricity supply. The customer pays the network operator for the contract, and the network operator compensates the customer in case the quality of electricity supply that is specified in the contract is not supplied. This master thesis aims to investigate the applicability of premium quality contracts in Sweden. Studying the use of premium quality contracts internationally, and Swedish energy

market actors’ views of quality of electricity supply and implementing premium quality contracts in Sweden will investigate this purpose. The participating actors in Sweden are DSOs, industries and the regulatory authority.

The conclusions of the study are that premium quality contracts are applicable in Sweden. This, since higher quality of electricity supply, than the guaranteed standards, is requested by the participating industries. The DSOs are also, in principal, willing to enter a contract and discuss the quality of electricity supply problems with its customers. However, the DSOs are not sure if the standards that are requested by the customers can be guaranteed. It is also concluded that regulations would facilitate the implementing of premium quality contracts, and that it is possible to introduce such regulations in the Swedish regulatory system. Other alternatives of changes in the quality regulation that possibly could satisfy the customers and the DSOs are also discussed. The alternatives discussed are, defining good quality for different kind of customers, include power quality specifications in the connection agreement or keep the regulations as they are today without any further operations. If premium quality contracts or any of the other alternatives is most suitable in Sweden, has to be studied further. 

Place, publisher, year, edition, pages
2016. , 73 p.
UPTEC STS, ISSN 1650-8319 ; 15044
National Category
Other Engineering and Technologies
URN: urn:nbn:se:uu:diva-280878OAI: oai:DiVA.org:uu-280878DiVA: diva2:912232
External cooperation
Educational program
Systems in Technology and Society Programme
Available from: 2016-03-16 Created: 2016-03-15 Last updated: 2016-03-16Bibliographically approved

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