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04/18/2024
The difficult path of supporting the energy transition with appropriate electricity tariffs
01/15/2025Econometric analysis of the quality of electricity distribution service: A focus on SAIDI and SAIFI

This study focuses on the analysis of the quality of the electricity service, using econometric models to link SAIDI and SAIFI with the revenues allowed for the distributor (Distribution Added Value, VAD), electricity losses and customer density.
Using data from 30 electricity distribution companies in 8 Latin American countries during 2018-2022, the results reveal significant relationships.
An increase in VAD from the previous period is associated with a decrease in SAIDI and SAIFI, while an increase in Electricity Losses (%) is related to an increase in SAIDI and SAIFI. Customer Density shows an inverse association with both indicators.
Highlighting the relevance of these findings for decision-making in the electricity sector, special attention is suggested to strategies that minimize losses and improve infrastructure management in areas with different customer densities.
This work not only contributes to the global understanding of the quality of electricity service, but also provides knowledge applicable to companies and policymakers at an international level.
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