Service quality performance indicators for electricity distribution in Brazil

One key aspect of electricity quality is the continuity of supply, assessed based on duration and interruption frequency indicators. In Brazil, these indicators are used to assess utility performance, including tariff reviews. This paper proposes adopting a stochastic frontier analysis to benchmark the continuity indicators. Based on Bayesian inference, the model can consider the temporal dynamics of utility performance in terms of gains from economies of scale due to market expansion. The results show that performance targets defined by the proposed methodology are compatible with those defined by the regulatory body.