In an unbundled energy market, the responsibility for quality of supply is distributed to a number of players. Therefore, the regulator plays an important role. 

Quality of supply is basically determined by two elements: quality of transmission and distribution networks, and the adequacy of installed and available generating capacity. Generation companies have to make their own investment decisions depending on expected market price developments. 

Supplementary market-based mechanisms can be designed to support incentives for sufficient investment. As regards network quality, a number of dimensions can be distinguished: commercial quality, continuity of supply, and power quality. Quality of supply is usually addressed by network codes and industry licenses. However, regulators impose additional explicit requirements, including performance standards and quality incentive schemes.

KEMA advises utilities and regulators on conceptual development, quantitative modeling and practical implementation of:

• Definition and measurement of quality of supply
• Network performance standards
• Capacity mechanisms to ensure generation adequacy
• Quality incentive schemes
• Effective benchmarking of quality performance