Power quality in the competitive market: the customer perspective on monitoring, reporting and benchmarking of service quality

Abstract

Electricity utilities measure, monitor, benchmark and evaluate their power quality using quantifiable data like, frequency of supply interruptions, number if incidences of anomalies/failures, duration of interruptions, e.t.c. This data can reveal:- the power quality from the utilities' perspective, losses in sales, financial losses and can aid in bench-marking with other utilities. The data is, therefore, vital for the drawing up of system and service quality improvement programs. However, there is need and this paper's purpose is to investigate whether the utilities' measurements are sufficient from the customers' needs and perspective. The investigation is based on general studies done on service quality across markets and specifically on a study done by the author on the Kenya Power and Lighting company limited, a Transmission and Distribution electricity utility in Kenya, East Africa. With the onset of global liberalization regime in the early 90's, most of the electricity utilities have had to unbundle the generation, transmission and distribution functions. Some utilities, thus, are no longer involved in the multiple tasks of generating, transmitting and distributing electrical energy but are either generating, transmitting or distributing OR undertaking the latter two tasks. The utilities which purchase electricity from generators and then transmit and distribute to the wholesale or retail customers, are in the business of “Marketing of Services” and must, therefore, place in their agenda the task of gauging or seeking to know the customers' perspective and/or assessment of their service delivery. This paper is intent on highlighting the customer's perspective in the service delivery of the electricity utility industry. Some of the information will be referenced from an MBA research Project titled “Customers' perception of Service Quality in a decentralized system in the public utility sector in Kenya: A case of the Kenya Power and Lighting Company Limited” which was successfully prepared and submitted by the author for the award of a degree in Masters of Business Administration (MBA), University of Nairobi, 2003. The earlier researches carried out on service quality will also be used to supplement the contents of this paper. The Literature review on the subject of service quality is covered in the section below followed by the measurement of service quality, the results of the measurements and then the conclusions and recommendations, in that order.