Direct Assessment Method For Estimating The Economic Cost Of Power Interruption

Abstract

This studyaimed at providing the approach to be followed by researchers when estimating cost of unserved utility service mostly electricity. It examined the different cost components that can be used to identify total direct cost using a typical direct assessment method. It was revealed that there are variations to direct cost assessment which involved production loss approach and systems outage customer cost approach. Direct Assessment method provides the richest source of information for tracking trends in interruption cost and had a number of weaknesses such as ignoring indirect cost, self assessment problem and nonconsideration for makeup cost. The method can also be used in assessing direct cost for interruption in services such as water supply and telephone services.