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Seven outstanding issues in energy network regulation

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  • Biggar, Darryl

Abstract

Despite many decades of experience with the theory and practice of energy network regulation, a number of outstanding issues remain to be resolved. This paper sets out a list of outstanding issues and suggests a possible way forward for each. The issues canvassed include matters related to distribution network pricing, the economic foundation of public utility regulation, the regulation of non-commercial enterprises, the coordination of transmission and generation investment, the handling of uncertainty in the regulatory process, the estimation of cost of capital, and the design of incentive mechanisms. It is hoped this list of issues will inspire a new generation of researchers to tackle important questions in public utility regulation.

Suggested Citation

  • Biggar, Darryl, 2022. "Seven outstanding issues in energy network regulation," Energy Economics, Elsevier, vol. 115(C).
    • Handle: RePEc:eee:eneeco:v:115:y:2022:i:c:s0140988322004807
    DOI: 10.1016/j.eneco.2022.106351
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    More about this item

    Keywords

    Distribution LMP; Sunk investment; Non-commercial enterprises; Building block model; Regulation under uncertainty; WACC;
    All these keywords.

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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