Capital and Operational Costs Estimation Methods: Benchmarking

Using Benchmark analyses is an established practice to set up a network tariff in electricity from National Regulatory Authorities (NRA) in many European Countries with the introduction of regulation based on incentives for energy companies to improve the efficiency of their activities. A very important issue in benchmarking is how to determine the requirements and performance criteria of the regulated companies to be compared. This publication examines the basic principles for performing a benchmark of both the distribution and transmission operators and the possibilities for implementation in set up a network tariff for electricity in Republic of Bulgaria.