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1
Guaranty of Supply Availability in a Competitive
Environment Strategy and Experience of a
German Distribution Company CIRED Conference
2003, Barcelona Contribution to Session 6, Block
2 Dr.-Ing. Peter Birkner, Business Unit System
Operation, Lechwerke AG, Augsburg, Germany
2
Consequences of Deregulation on the Distribution
Business
Efficiency of Grid Design
Supply Quality
Efficiency of Operation

Imputed Depreci- ation Allowances
Budget for Reinvestment
Imputed Return on Equity
Revenues of Asset Owner
3
Consequences of Deregulation on the Distribution
Business
Vertically Integrated, Stand Alone Distribution
Company )
Horizontal Cooperation of Distribution Companies
)
Asset Owner
Asset Owner
Asset Owner
Asset Manager
Asset Manager
Asset Manager
Asset Service
Asset Service
Industrial Partner
Industrial Partner
Industrial Partner
) electricity or also other scopes
4
Consequences of Deregulation on the Distribution
Business

• Demand Side Management (DSM) and System Operator
• Reduction of maximum power demand via DSM limits
  necessary capacity
• Reduction of maximum power demand via DSM limits
  use-of-system charges payable to the system
  operator of the higher voltage level
• Demand Side Management (DSM) and Electricity
  Supplier
• Predictability of power demand in order to
  reduce settlement cost

DSM
Electricity Supplier
Customer
System Operator