A systems approach for maintenance and renewal efficiency

Facing a competitive environment production utilities are forced to rethink their maintenance strategies[1]. Since the deregulation of the Swedish electrical market in 1996 energy sales have become a competitive market, while distribution and transmission became natural monopolies. For electric production companies the income is a result of the prices for electricity set by supply and demand. The hourly margin cost sets the price for the whole market. Before the change the tariff was essentially the sum of cost of utilities and a reasonable profit: Tariff=3D Cost + Profit. Under the new regulation the tariff is determined independently of the cost of utilities. Hence, the profit is what is left when utilities costs are subtracted: Profit=3DTariff-Costs[2].