Evaluating the regulator: Winners and losers in the regulation of Spanish electricity distribution
AbstractThe principal aim of this study is to evaluate the regulation of electricity distribution in Spain. To this end, we begin by analyzing whether the changes introduced by the regulator led distribution companies to improve their efficiency; we then address whether the reimbursements paid to the distribution companies are linked to efficiency; lastly, we examine whether consumers benefited from the efficiency improvements. We focus on Spain because the electricity regulator in that country is a longstanding pioneer in the implementation of incentive-based regulatory models. Our analysis was implemented using the regulatory model proposed by Bogetoft (1997) as a benchmark. The results show that the Spanish electricity regulator did not establish a link between efficiency and the reimbursements paid to electricity companies; in addition, the electricity companies benefited to the detriment of consumers.
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Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 33 (2011)
Issue (Month): 5 (September)
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Web page: http://www.elsevier.com/locate/eneco
Efficiency analysis Regulation by incentives Spanish electricity distribution Yardstick competition;
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- Peter Bogetoft, 2000. "DEA and Activity Planning under Asymmetric Information," Journal of Productivity Analysis, Springer, vol. 13(1), pages 7-48, January.
- Emili Grifell-Tatjé & C. A. Knox Lovell, 2003. "The Managers versus the Consultants," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(1), pages 119-138, 03.
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- Christopher R. Knittel, 2002. "Alternative Regulatory Methods And Firm Efficiency: Stochastic Frontier Evidence From The U.S. Electricity Industry," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 530-540, August.
- Arocena, Pablo & Contin, Ignacio & Huerta, Emilio, 2002. "Price regulation in the Spanish energy sectors: who benefits?," Energy Policy, Elsevier, vol. 30(10), pages 885-895, August.
- Linares, Pedro & Rey, Luis, 2013. "The costs of electricity interruptions in Spain. Are we sending the right signals?," Energy Policy, Elsevier, vol. 61(C), pages 751-760.
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