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Italian Regulation of Electricity Distribution and its Impact on Efficiency, Investments and Innovation: A Qualitative Assessment

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  • S. Benedettini
  • F. Pontoni

Abstract

The increase in distributed generation and the pro-active role of consumers call for smarter networks. Consequently, regulation must change to promote this evolution. This article performs a critical overview of the Italian regulation of electricity distribution and its effectiveness in encouraging efficiency, quality and innovative investments. The analysis shows that the regulator has followed a building-block approach: throughout different regulatory periods, it has added new modules to its previous regulatory mechanism to take care of the constantly increasing set of objectives. This does not give DSOs a unitary and coherent regulatory framework and has led to the overlapping of different incentive mechanisms.

Suggested Citation

  • S. Benedettini & F. Pontoni, 2013. "Italian Regulation of Electricity Distribution and its Impact on Efficiency, Investments and Innovation: A Qualitative Assessment," Competition and Regulation in Network Industries, Intersentia, vol. 14(4), pages 365-385, December.
    • Handle: RePEc:sen:journl:v:14:i:4:y:2013:p:365-385
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