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The structure and functioning of network industries have a great effect on the well-being of society, being also prerequisites for economic growth and productivity. Social goals, industry trends, ownership structures, and the economic environment play an important role in the development of such networks. Most network industries enjoy a dominant position on the market. Their performance is steered by national regulatory authorities via price control and quality requirements. For this the regulatory authorities need besides financial indicators feedback on the technical performance of the provided services. The vast development in sensing, data transmission, and collection technologies, as well as in analytical methods, has made it possible and feasible to acquire the needed feedback. Such comprehensive data enable to construct a performance measurement system to regulate, develop, and administer the networks. This paper explores the possibility of developing an overall technical performance index and presents a relevant concept. The suggested overall index would be an additional regulatory tool to evaluate the performance of network industries and their compliance with consumers' requirements. The aim of the proposed concept is to establish empirically verifiable feedback between a given state of technology, state of institutional governance, and the performance of network industries.

A concept for performance measurement and evaluation in network industries