Managing customer and distribution utility costs

A realistic approach to managing customer and utility costs is addressed in the present era of market competitiveness, unbundling of the power industry and complex electricity pricing structures. The paper incorporates the commodity cost, viewed as the price of electricity, to both the utility and customers in terms of dominant technical, financial and social factors which include customer perception and quality of service. A novel and unified approach is presented regarding the management of electricity supply options and quality of service to customers. Advanced software has been developed to enable utility management to assess various cost components and their time-trend impacts.