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Networks, Innovation And Regulation

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  • Stephen Smith

Abstract

The design and operation of Britain's energy networks have not changed significantly in 50 years. Energy networks will have a central role to play in decarbonising the economy. Unprecedented levels of technical and commercial innovation are likely to be necessary. The existing incentive‐based approach to regulating the monopoly networks has been a success in lowering prices whilst delivering investment and improved reliability. But it will need to change to encourage and reward these levels of innovation. This paper sets out some of the regulators' thinking on the changes required.

Suggested Citation

  • Stephen Smith, 2010. "Networks, Innovation And Regulation," Economic Affairs, Wiley Blackwell, vol. 30(2), pages 28-32, June.
    • Handle: RePEc:bla:ecaffa:v:30:y:2010:i:2:p:28-32
    DOI: 10.1111/j.1468-0270.2010.02002.x
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