regulation concerning electricity demand forecast

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  • 8/4/2019 Regulation Concerning Electricity Demand Forecast

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    REGULATION CONCERNING ELECTRICITY DEMAND FORECAST

    CHAPTER ONE

    Objective, Scope, Legal Basis, Definitions and Abbreviations

    Objective

    Article 1 (1) The objective of this Regulation is to set forth the principles andprocedures regarding formation of electricity demand forecasts those constitute the basis for preparation of generation capacity projection together with transmission system 10 yearstatement, and distribution companies investment plans together with distribution system 10year statement.

    Scope

    Article 2 (1) This Regulation covers the principles and procedures to be followed in

    performing, assessing, updating and approving of demand forecasts in accordance with thedemand forecast method, which is determined by distribution companies.

    Legal Basis

    Article 3 (1) This Regulation has been issued in compliance with the provisions of theElectricity Market Law no. 4628.

    Definitions

    Article 4 (1) For the purposes of interpretation and implementation of this Regulation,the following terms and abbreviations bear the following meanings;

    a) Distribution region: The region defined in the license of a distribution company, b) Distribution company: Any legal entity engaged in electricity distribution in a

    designated geographical region,c) Law: Electricity Market Law No. 4628 dated February 20, 2001,) Board: The Energy Market Regulatory Board,d) Authority: The Energy Market Regulatory Authority,e) Demand forecasting: The forecast performed for a certain period of time under

    different scenario options by a distribution company,f) Demand forecast method: The model to be formed by using scientific methods within

    the demand forecasting framework,g) TEA: Turkish Electricity Transmission Corp.

    CHAPTER TWO

    Principles, Periods of Demand Forecasting, Determination of Method, Data Set

    Demand forecasting method and its principles

    Article 5 (1) Distribution company performs or makes someone to perform demandforecasting for its own region by using scientifically and technically proven methods bytaking into account peculiarities of concerned distribution region and by considering

    published official macroeconomic targets, and if deemed necessary by asking the opinions ofrelevant authorities and institutions.

    (2) Making real or legal persons to perform demand forecasting by a distributioncompany does not remove the distribution companys responsibility.

    The English version of this Regulation is intended to assist interested foreign parties. There may bediscrepancies between the Turkish and English versions. In case such discrepancies occur, the Turkishversion shall prevail.

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    Demand forecasting period and scenarios

    Article 6 (1) Demand forecasts are performed annually with a 10 years horizon, onthe basis of low, base and high consumption scenarios. The base scenario is taken as the basisfor preparation of generation capacity projection and transmission system 10 year statement

    by TEA, and of investment plan and distribution system 10 year statement by distributioncompanies.

    Fundamental data set for demand forecasting

    Article 7 (1) Fundamental data set for demand forecasting may be formed fromeconomical, social, demographic, climatic, environmental data and past values of the variablethat is to be forecasted, and other regional data that demand forecast model requires.

    (2) Official data that is published by relevant authorities and institutions together withregional data that is registered by a distribution company are used in fundamental data set fordemand forecasting.

    (3) Effects of used data in data set that is required by demand forecasting model on

    results of demand forecasting is justified by means of scientific and logical approaches.(4) It is essential to have enough number of observations concerning data set that is to

    be used in demand forecasting within the framework of method to be chosen and of model tobe formed. The data set to be used is adjusted for making it appropriate for using it in demandforecasting model through application of transformations those resulting from statistical tests.

    CHAPTER THREE

    Principles, Assessment and Verification of Model

    Principles to be considered in demand forecasting

    Article 8 (1) The following principles are considered in formation of the model that is tobe used for demand forecasting;

    a) State of reflection of relation between variables by its mathematical expression,b) State of accommodation of an economically meaningful relation between used

    illustrative independent variable or variables and dependent variable or variables to beforecasted,

    c) State of being strong in illustration capacity of deterministic determinationcoefficients,

    ) State of being an easy and understandable design,d) State of showing consistency with economy and econometrics theory,

    e) State of showing consistency between forecasts produced for forecasted values ofvariable or variables with real values of these variable or variables, if it is performed for pastyears in retrospective.

    Assessment and verification of demand forecasting model

    Article 9 (1) Following the formation of the demand forecasting model, the followinggenerally accepted tests in econometrics and statistics literature together with other requiredtests, which are formed within the framework of chosen different models are performed andsubsequently necessary corrections and amendments are made:

    a) Whether the whole model is statistically significant,b) Whether the parameter or parameters for forecasted illustrative variable or variables

    are statistically significant,c) Whether the model shows structural stability,

    The English version of this Regulation is intended to assist interested foreign parties. There may bediscrepancies between the Turkish and English versions. In case such discrepancies occur, the Turkishversion shall prevail.

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    ) Whether the model presents multi co-linearity, heteroscedasticity and successiveautocorrelation ,

    d) Whether the model excludes a necessary variable, includes unnecessary variables,and justifies straightness of functional form.

    (2) The confidence interval for employed tests shall not exceed 10%.

    CHAPTER FOUR

    Results of Demand Forecasts, Reporting and Publishing

    Demand forecast results

    Article 10 (1) Demand forecasts results include;a) Annual forecasts for total electricity demand, peak demand, and number of

    subscribers in the relevant distribution region, which are produced by means of a model ormodels, for a 10 years time horizon on the basis low, base and high consumption scenarios,

    b) Information to be used for preparation of capacity generation projection and

    transmission system 10 year statement as articulated in the Electricity Market GridRegulation,

    c) Information to be used for preparation of distribution system 10 year statement andinvestment plan.

    (2) The information required in subparagraphs (b) and (c) of first paragraph may beproduced through use information and foresights those rooted to the results of demandforecasting model.

    Demand forecast report

    Article 11 (1) Demand forecast results, together with data set used in demandforecasting, as in the form of a report are presented to the Authority both in written and inmagnetic media by end February of each year.

    (2) Beside the demand forecast results indicated in Article 10 and data set used indemand forecasting, assumptions concerning demand forecasting model, mathematical andeconometric theoretical framework, global assessment and justification of data, forecasting of

    parameters, performing of tests, addition of necessary amendments and corrections,comparison of fitted values with actual values of dependent realized variable or variablesthrough use of demand forecasting model with the ones produced through use of the model,forecasts made under different scenarios, and overall comments and assessments fordistribution region and model or models are provided in detail in the Demand ForecastReport.

    (3) The Demand Forecast Report prepared by a distribution company is investigated indue course to consistency with the principles and procedures laid down in this Regulation, andif deemed appropriate by a Board decision, it is submitted to TEA by the distributioncompany within 10 days following the notification of the Authority.

    (4) The Demand Forecast Report is returned to the distribution company for revision, ifnot deemed appropriate by the Board. Distribution company presents the revised DemandForecast Report to the Authority within 1 month time following the notification date.

    Consolidation of demand forecasts

    Article 12 (1) TEA consolidates the forecasts of consumers those are directlyconnected to the transmission system with the demand forecasts results of distribution

    regions. TEA, while forming the format of the report to be presented to the Authority, may

    The English version of this Regulation is intended to assist interested foreign parties. There may bediscrepancies between the Turkish and English versions. In case such discrepancies occur, the Turkishversion shall prevail.

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    ask additional information and document concerning Demand Forecast Report fromdistribution companies, by declaring the reason behind.

    (2) The demand forecasts concluded by TEA are presented to the Authority by 1 Julyof each year.

    Approval and publishing of demand forecastsArticle 13 (1) The demand forecasts those concluded and presented to the Authority

    by TEA are published on TEA internet site as in the form tables for each distributionregion and as consolidated. If it is not approved by the Board, the demand forecasts are sent toTEA for reviewing. TEA presents the revised demand forecasts within one month timefollowing the date of notification.

    (2) Demand forecasts are published by 1 October of each year.

    Updating of forecast results

    Article 14 (1) Distribution company prepares data set for next coming 10 years periodthrough revision of data set and if required the model or models, by taking into account

    annual realization of forecasted variable or variables with illustrative variable or variables.(2) Distribution company, may make changes in the data set used for forecasting, in

    general structure of forecasting model, and in demand forecast method if they rely oneconomical and scientific facts.

    (3) If more than 5% difference between fitted value according to base scenario andactual value in concurring 2 years, demand forecast method is reviewed by the distributioncompany, and written opinion is presented to the Board.

    Data supply obligation

    Article 15 (1) Legal entities managing organized industrial zones give the data that islimited with the purpose of performing demand forecasting, which is asked by distributioncompanies, to relevant distribution company. The distribution company uses this data in

    performing regional demand forecasting.

    Confidentiality

    Article 16 (1) Any distribution company and TEA cannot use and disclose theinformation that they gathered under the scope of this Regulation for any other means.

    CHAPTER FIVE

    Provisional Articles and Final Provisions

    Provisional Article 1 (1) A sample Demand Forecast Report prepared by adistribution company in accordance with the Article 11, together with the data set used indemand forecasting is presented to the Authority once, by 31 August, within the scope of

    performed preparatory studies before approval of the regional demand forecasts by the Board.

    Effectiveness

    Article 17 (1) This Regulation becomes effective on the date of its publication.

    Enforcement

    Article 18 (1) This Regulation is enforced by the President of the Energy Market

    Regulatory Authority.

    The English version of this Regulation is intended to assist interested foreign parties. There may bediscrepancies between the Turkish and English versions. In case such discrepancies occur, the Turkishversion shall prevail.