What is PBR in energy?
What is PBR in energy?
Performance-based regulation (“PBR”) includes a set of alternative regulatory mechanisms intended to focus utilities on performance and desired outcomes, such as increased renewable energy, lower cost, and improved customer service.
How does performance-based regulation work?
Performance-based regulation (PBR) promotes a shift from cost of service to value of service and provides a way for utilities, customers, and broader society to meet their respective goals.
What is PBR methodology?
Performance-based Rate-Setting Methodology (PBR) It is an internationally-accepted methodology which uses projections of operating and capital expenditures to enable the regulator to evaluate investment in facilities to meet customer requirements and prescribed service levels.
What are the benefits of PBR methodology?
PBR is an alternative to traditional utility regulation that emphasizes incentives for good performance. It can reduce utilities’ incentives to grow their rate base and use of their system and strengthen incentives to use DERs to reduce costs.
What is process based regulation?
Process-based regulation specifies risk identification, assessment and control processes that must be undertaken, documented and (usually) audited. It is most commonly used in contexts in which there are multiple risk sources and multiple feasible risk controls.
What is the fundamental difference between a prescriptive and a performance-based regulatory environment?
The prescriptive approach emphasizes control and accountability. The performance-based approach desires to promote flexibility with accountability for results.
What is performance-based law?
A regulatory approach that focuses on desired, measurable outcomes, rather than prescriptive processes, techniques, or procedures.
What is performance based law?
What is the fundamental difference between a prescriptive and a performance based regulatory environment?
What do we mean when we say the regulations are performance based?
Performance based regulation means developing a comprehensive risk picture with the organisations we regulate and building our knowledge and data to make sure we target our oversight and regulatory activities in the areas where it will make the biggest difference.