IRiR

README IS WORK IN PROGRESS

IRiR is a script for calculating Revenue Caps for Norwegian Electricity DSOs.

All usage and calculation results are the users responsibility. NVE is not responsible for any result calculated by users outside NVE

The master branch is by defualt set to replicate the revenue cap calculation based on the most recently available dataset. When revenue caps are decided the necessary files will be provided on github, but requires new bootstrap estimates. Thus, using files from github will not perfectly replicate the results published on NVE. For perfect replication of decided revenue caps use script for releveant year published on nve.no with BS.new = 0.

Brief description of file and folder organization

• NVE_IRiR v1.0.1 (19.02.2018)
  This file sources all relevant subscripts and performs the revenue cap calculation "through and through". Called "main script" in the guideline document.

• NVE_HIiR v1.0.1 (19.02.2018)
  This file can calculate estimates of Harmony Income (compensation for mergers). It depends on the correct usage of the NVE_merges-function and calls files from the share "R_Script\Harmony".

• Data
  Contains two sub-folders. BaseData and Bootstrap.

  • BaseData contains several csv-files that are necessary for the calculation. These are different BaseData-sets, but also a set of IDs for each DSO.

  • BootStrap contains the latest version of the bootstrap corrected efficiences for use in stage 2, the files will by default be replaced by new estimates if code is run with BS.new = 1.

• Harmony
  Similar as the Data-folder, but used for the Harmony Income calculations. HIiR has more bootstraps, before and after relevant merger for analysis.

• R Script
  A folder containing all files needed in the IRiR-file, and also the subfolder Harmony which contains the scripts called by the HIiR-script.

  • 0_1_Config_Assumptions_Data.R : Imports dataset, defines important assumtions and parameters (interest rates, CPI-values) etc.

  • 0_2_Calculated_Input_Values.R : Calculates values from base data to data ready for DEA.

  • 0_3_Company_Selection.R : Distributes all companies in relevant groups to create sub-datasets of dat in later stages.

  • 1_0_DEA.R : Stage 1 - Performs the DEA-calculations. Described in report 71/2012 NOR http://publikasjoner.nve.no/rapport/2012/rapport2012_71.pdf

  • 2_0_Stage2_GeoCorrection.R : Stage 2 - Corrects efficiencies from stage 1 for environmental conditions. Described in report 71/2012 and technicalites are described here ENG: http://bit.ly/2sH5oLV .

  • 3_0_Stage3_Calibration.R : Cost norm calibration, described in circular 1/2013 NOR http://webfileservice.nve.no/API/PublishedFiles/Download/201607005/1944365

  • Spec_OOTO-model.R : OOTO model for companies "Out Of The Ordinary". Criterias for this evalutaion is further described in the script.

  • Spec_AvEff-model.R : Script for companies set to average efficieny. Criterieas for this evalutaion is described in the script.

  • 4_0_Revenue_Cap_Calculation.R : File that gather cost norms from all different models and calculates revenue caps. Results are presented in the dataframe "RevCap".

  • functions_nve.R : file with R functions defined for/by NVE. Each function is further described in the script.