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The 2001-3 electricity distribution price control review in the Netherlands: regulatory process and consumer welfare

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Author Info
Paul Nillesen ()
Michael Pollitt ()

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Abstract

The outcome of the first electricity distribution price control review in The Netherlands did not deliver the savings initially suggested by the regulator (DTe). During the course of the first 3-year regulatory period, DTe revised the X-Factors four times. The impact on tariffs has been substantial. DTe initially announced in 2000 that savings would be equivalent to 25% of electric distribution revenues ( $${\texttt{C}\!\!\!\rule[2.3pt]{.4em}{.3pt}\!\!\rule[3.3pt]{. 4em}{.3pt}}$$ 2bn). However, final X-Factors in May 2003 resulted in savings of 10% of revenues. The total cost to consumers—when compared to the most probable outcome—has been $${\texttt{C}\!\!\!\rule[2.3pt]{.4em}{.3pt}\!\!\rule[3.3pt]{. 4em}{.3pt}}$$ 140 mln (7% of total revenues). Copyright Springer Science+Business Media, LLC 2007

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File URL: http://hdl.handle.net/10.1007/s11149-006-9014-8
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Publisher Info
Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 31 (2007)
Issue (Month): 3 (June)
Pages: 261-287
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Handle: RePEc:kap:regeco:v:31:y:2007:i:3:p:261-287

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Web page: http://www.springerlink.com/link.asp?id=100298

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Related research
Keywords: Regulation; Benchmarking; Consumer welfare; Regulatory process; X-Factor; D42; D60; K2; L5;

References listed on IDEAS
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  1. Jamasb, T. & Pollitt, M., 2000. "Benchmarking and regulation: international electricity experience," Utilities Policy, Elsevier, vol. 9(3), pages 107-130, September. [Downloadable!] (restricted)
  2. Jamasb, Tooraj & Pollitt, Michael, 2003. "International benchmarking and regulation: an application to European electricity distribution utilities," Energy Policy, Elsevier, vol. 31(15), pages 1609-1622, December. [Downloadable!] (restricted)
  3. Crew, Michael A & Kleindorfer, Paul R, 1996. "Incentive Regulation in the United Kingdom and the United States: Some Lessons," Journal of Regulatory Economics, Springer, vol. 9(3), pages 211-25, May.
  4. Jamasb, Tooraj & Nillesen, Paul & Pollitt, Michael, 2003. "Gaming the Regulator: A Survey," The Electricity Journal, Elsevier, vol. 16(10), pages 68-80, December. [Downloadable!] (restricted)
  5. Mark Armstrong & Simon Cowan & John Vickers, 1994. "Regulatory Reform: Economic Analysis and British Experience," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510790, December.
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This page was last updated on 2009-12-4.


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