Regulatory & compliance⏱ ~1 minNO

KILE

Quality-adjusted Revenue (Kvalitetsjustert inntektsramme) - economic regulation where grid companies are penalised for power outages based on their cost to customers.

KILE (Kvalitetsjusterte Inntektsrammer ved ikke Levert Energi - Quality-adjusted Revenue Caps for Undelivered Energy) is NVENorway's Directorate of Water Resources and Energy - regulates the electricity and water resources sectors.'s mechanism for giving grid companies strong financial incentives to minimise power outages. When a grid companyCompany that owns and operates electricity grids and is responsible for power supply to end users. experiences an interruption, a KILE cost is calculated based on: duration of the interruption, number of affected customers, customer types (household, commercial, industrial, critical infrastructureSystems and facilities necessary for society's basic functions - including power supply, water systems, telecommunications, and transport.) and time of occurrence (day/night, summer/winter). The cost rates differ between customer groups - interruptions affecting hospitals or industry cost significantly more than those affecting households. The KILE cost is deducted from the grid company's revenue capNVE's regulatory model that sets a ceiling on grid operators' allowed revenues over a regulatory period. by NVE, directly affecting profitability. The system has been highly effective: Norway's supply reliability is among the highest in Europe. For IT systems, KILE means that grid companies require accurate outage registration systems (DMSDistribution Management System - system for real-time monitoring and control of the distribution network./OMS), linked to customer databases and GISGeographic Information System - system for collecting, storing and analyzing location-based data - used in network mapping and planning. systems.

RegulationReliabilityGrid