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The purpose of this paper is to examine the key outage‐cost‐influencing applications (fault location and network restoration, fault reporting, field crew management, and reconfiguration) of the distribution management system (DMS) and analyzes the benefits provided by them. The objective of the study is an evaluation of their influence on outage costs deriving from the adoption of automatic equipment in managing distribution systems.

Cost and benefit calculations in this paper are made for a typical North European rural medium‐voltage network. The benefits are calculated in terms of outage costs for each of the above‐presented applications and compared with the investment cost, including the annual cost of maintenance, of the DMS. The empirical results and validation of the theoretical calculations are performed by an electric utility, where the DMS benefit evaluation is taking place.

By capitalizing the applications of the DMS, it is possible to acquire considerable benefits in outage costs. It is shown that the greatest cost‐based benefits are obtained from the fault location and field crew management applications. The case study further shows that the DMS can reduce the operation costs of utilities.

The calculations are based on network expert assumptions about System Average Interruption Duration (SAIDI), carried out for a specific overhead‐line network operating in a specific European rural medium‐voltage environment. Sharing of utilities' de facto SAIDI results as a basis for calculations would decrease the need for subjective expert assumptions in the future analyses.

Application of the proposed framework for decision making and lessons learned can support electric utilities when planning for unbundling and strategic target‐setting in the unbundled business model.

There are few reports available on similar actual DMS‐application‐based cost benefits due to the nature of private utility information that is preferably not disclosed.

Based on literature and an empirical case, the purpose of this paper is to present a framework for decision‐making in utilities where unbundling considerations are taking place. The paper analyses the implications of splitting long‐term network planning activity from the organization responsible for short‐term network operation activities.

The proposed framework includes an analysis of impacts of external forces, set‐up of common targets and performance models, and alignment of responsibilities in the new organization. The empirical results and validation of the proposed framework is performed by an electric utility, where legal unbundling of activities has taken place; the study includes expert interviews and theoretical analysis.

Colliding interests in the new business model can be avoided if economic and technical targets are mainly set by the regulator for both network development and operation activities.

The results are based on internal re‐organization; a complementary study on re‐organizing network business activities to an external service provider could give information about the generalizability of the findings.

Application of the proposed framework for decision‐making and lessons learned can support electric utilities when planning for unbundling and strategic target‐setting in the unbundled business model.

The study presents experiences of re‐organized network business activities in a pioneering market area with a long experience of outsourcing. The detailed analysis of internal re‐organization within one electric utility can facilitate further restructuring phases.

Underground cabling has become a true alternative in construction of electricity distribution networks, even in rural areas. The increasing amount of underground installations requires strategic work that helps to define the most profitable cabling targets. The purpose of this paper is to introduce a methodology to consider the underground cabling process.

The paper proposes a cabling concept that covers the issues on how cabling should be carried out. The analysis is based on techno‐economic and reliability analyses. The methodology consists of several steps that together constitute the concept.

The underground cabling concept comprises several steps that can be simplified into questions: where, what, when and how the network cabling process is carried out. The analysis of these questions and the related features of the network show that different approaches to the renovation can cause significant differences in profitability between the renovation strategies.

The underground cabling concept provides a method to analyse the cabling process, and it contains several alternatives for applying the concept. Thus, the applicability of a certain method depends on the network and the objectives of the distribution system operator.

Renovation planning of the network has become common in distribution companies. Traditionally, ageing of the network has been the driver for the renovation. However, in the future, the scope of renovation planning should also include other renovation drivers, such as reliability.

The methodology proposed in the paper can be applied in the renovation and development process of distribution networks. The results are universal in the electricity distribution.

The purpose of this paper is to shed light on the governance choices of firms operating in the electricity distribution network operation activities. The study aims to consider both costs and benefits of different governance choices and to examine which of the activities could be outsourced and which it is preferable to keep in‐house. The study makes a distinction between the electricity retail services and electricity distribution network activities and focuses solely on the network business.

The study is based on a four‐staged process and utilizes the extended transaction cost economics as a theoretical framework. The research design includes in‐depth interviews with ten managers and CEOs of Finnish electrical utilities, analysis and interpretation of findings and verification of results by electricity network business experts.

The extended transactional cost economics theoretical framework and research design support analysis of governance structures and make‐or‐buy decisions. The findings demonstrate that the activities of the companies operating in the electricity distribution business differ in terms of potential long‐term efficiency effects when sourced from the market or made in‐house. The determinants of the governance choice depend partly on the nature and strategic importance of the activity in question. Operations management seems to be a function to be kept in‐house in the current market situation, whereas there are clear potential benefits that can be obtained by outsourcing field work activities. The results related to the governance of control room activities are more complicated.

This study brings not only the transaction costs but also the benefit‐side and the dynamic aspects of boundary choices under assessment.

The purpose of the paper is to analyze the development needs and opportunities in the distribution system operators’ (DSO) tariff structures in the smart-grid environment.

The impacts of the distribution pricing schemes for the stakeholders and their requirements for the tariff structures are evaluated by qualitative analyses. Furthermore, there is a case analysis concerning the practical development possibilities of the DSO tariff structures in Finland.

Major finding of the paper is that the demand-based power band tariff is the optimal solution for the DSO pricing structure, when taking into account the real-life limitations and the requirements of the stakeholders.

Outcomes of the paper can be applied in practice in design of the pricing schemes in the electricity distribution. Incentive provision impacts and cost reflectivity of the DSO tariffs can be improved by implementing the suggested pricing structure.

The paper provides a novel viewpoint on the study of the DSO tariff design by considering the impacts of the pricing for the stakeholders and their requirements for tariff structure. Furthermore, the real-life limitations in the tariff design have been taken into account by analyzing the development options in Finland. Results are useful, especially for the DSOs, regulators and academics, who are working with the tariff development issues.

The purpose of this paper is to establish a methodological framework to address key issues in electricity distribution network development. The paper defines subtasks in the strategy process and presents key elements in the strategy work and long‐term network planning. The results are illustrated by a case network.

The paper describes the methodology for cost and reliability analyses in the strategy work. The focus is on techno‐economic feasibility of certain network development technologies in the network strategy and the surveys are linked to economic regulation, specifically to reliability of supply and allowed return. The study addresses the stages of strategic decision making and compilation of investment strategies.

The strategic planning concept and methods are applicable in practice; the results have proven valuable in the long‐term business development and in discussions with the company owners. Outage costs are an essential element in the economic regulation of the business, reliability being a key driver in network planning.

There is no universal solution to strategic decision making, but each development task is highly case specific. This is due to diverging operating environments and targets set by the company owners; these issues strongly influence the strategy process.

The work illustrates strategic planning in an actual distribution company and shows how the methodology can be applied to the strategic network development. Nevertheless, the results cannot be generalised as such, but each network has to be considered individually.

The proposed concept can be applied to the long‐term development of distribution networks. The results are internationally applicable, yet diverging regulatory models call for specific methodology in each country.

Under the Kyoto protocol, emissions trading was imposed upon the Nordic Nord Pool Spot market in 2005. The purpose of this paper is to identify and characterize an important side‐effect of emissions trading on electricity spot market price behavior by statistically comparing price behavior before and after emissions trading was introduced.

The analysis is based on an analysis of the skill of regression models in explaining price behavior before and after 2005.

It turns out that regression models based on background variables such as temperature, water reservoir levels, and even the price of emission rights themselves lose much of their skill from 2005 onwards. The histogram of the residual time series of an optimally calibrated regression model demonstrates a considerably more “fat‐tailed” behavior after 2005, with a much higher volatility and reduced amenability for regression by background variables.

The results point to an increased medium‐ and long‐term uncertainty in the Nordic electricity spot market, brought about by emissions trading as an unintended side‐effect. It seems emissions trading has introduced a stronger “psychological” component into price behavior, increasing its volatility and making it prone to more frequent price spikes. This has made the electricity market more difficult for market managers and regulators to manage.

The paper presents the first statistical attempt to quantify the way electricity spot price dynamics have changed in Europe after starting the Emissions Trading Scheme based on the Kyoto protocol.

The aim of this research was to evaluate the new procurement practices of information and communication technology (ICT) services in Finnish-speaking schools in the City of Kauniainen. In the new model, schools define their needs and school administration mandates the procurement through tendering. The research included a review of the problems associated with procurement practices and the assessment of the procurement model. The results show that service levels have been improved and unit costs as well as the environmental load have been reduced. The new model requires the schools to have the skills and expertise to define their needs and the competencies to prepare and execute the procurement process. The case analysis of the Finnish “Dream School” in Kauniainen shows that administrative and governance aspects are equally important in successful deployment of technology.