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Operation Efficiency Essay

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2.5 Operation efficiency of the equipment and network performance
A well-qualified and trained maintenance machine operators and maintenance technicians are very crucial to improvement of electricity network performance. They collect information from non-automated equipment in the substations or factories, and they report occurrences (Nakajima, 1988). Most of the minor maintenance tasks are handled directly by operators instead of the maintenance team that stay distance away from the substations or factories. Thus, flexible, co-operative and shared responsibility approach among production and maintenance personnel is required to promote operator ownership and free up maintenance personnel to perform personnel to perform more technically …show more content…

In addition, regulation should be accepted to regulated companies and maximize the overall welfare by promoting efficient operation (Koplakangas-Solovainen, 2002). Cubin and Stern (2006) assessed whether new regulatory laws and higher quality regulatory governance are associated with performance outcomes. They analysed 28 developing economies between 1980 and 2001 and they found evidence that good regulatory governance had a positive and statistically significant effect on per capita generation capacity.
Some researchers found that privatization does not lead to improved labour productivity, higher capital utilization, increased generating capacity, or higher output unless it is coupled with independent regulation. This arm’s regulation is expected to encourage private capital to invest in capacity in the face of a potential problem under conditions of incomplete contracts (Spiller, 1996; Schimitz, 2001). Some form of independent regulation can provide some form of independent regulation can provide reassurance to investors that prices, outputs will not politically have manipulated.
It could be argued that the greater the share of the benefits the regulated network companies are allowed to retain, the greater their incentive to make efficiency savings and, hence, the greater their incentive to make efficiency savings to be eventually passed on to consumers (Cambini and Rondi, 2010). On the

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