This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Incentive Regulation of Electricity Distribution Networks: Lessons of Experience from Britain

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Jamasb, T.
Pollitt, M.

Additional information is available for the following registered author(s):

Abstract

This paper reviews the recent experience of the UK electricity distribution sector under incentive regulation. The UK has a significant and transparent history in implementing incentive regulation in the period since 1990. We demonstrate the successes of this period in reducing costs, prices and energy losses while maintaining quality of service. We also draw out the lessons for other countries in implementing distribution sector reform. We conclude by discussing the place of incentive regulation of networks within the wider reform context, the required legislative framework, the need for appropriate unbundling, the importance of quality of service incentives, the regulatory information requirements and the role of sector rationalisation.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.electricitypolicy.org.uk/pubs/wp/eprg0701.pdf
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Howard Cobb)
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0709.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 29
Date of creation: Feb 2007
Date of revision:
Handle: RePEc:cam:camdae:0709

Note: Ec
Contact details of provider:
Web page: http://www.econ.cam.ac.uk/index.htm

For technical questions regarding this item, or to correct its listing, contact: (Howard Cobb).

Related research
Keywords: Electricity; liberalisation; regulation; benchmarking;

Other versions of this item:

Find related papers by JEL classification:
L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Hammond, Christopher J & Johnes, Geraint & Robinson, Terry, 2002. "Technical Efficiency under Alternative Regulatory Regimes: Evidence from the Inter-war British Gas Industry," Journal of Regulatory Economics, Springer, vol. 22(3), pages 251-70, November. [Downloadable!] (restricted)
    Other versions:
  2. Jamasb, Tooraj & Nillesen, Paul & Pollitt, Michael, 2004. "Strategic behaviour under regulatory benchmarking," Energy Economics, Elsevier, vol. 26(5), pages 825-843, September. [Downloadable!] (restricted)
  3. Baron, David P., 1989. "Design of regulatory mechanisms and institutions," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 24, pages 1347-1447 Elsevier. [Downloadable!] (restricted)
  4. Federico Basañes & Eduardo Saavedra & Raimundo Soto, . "Post-Privatization Renegotiations and Disputes in Chile," ILADES-Georgetown University Working Papers inv117, Ilades-Georgetown University, School of Economics and Bussines. [Downloadable!]
  5. Manuel A. Abdala, 2001. "Institutions, Contracts And Regulation Of Infrastructure In Argentina," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 217-254, November. [Downloadable!]
  6. Brower, Michael C. & Thomas, Stephen D. & Mitchell, Catherine M., 1997. "Lessons from the British restructuring experience," The Electricity Journal, Elsevier, vol. 10(3), pages 40-51, April. [Downloadable!] (restricted)
  7. Gorini de Oliveira, Ricardo & Tolmasquim, Mauricio Tiomno, 2004. "Regulatory performance analysis case study: Britain's electricity industry," Energy Policy, Elsevier, vol. 32(11), pages 1261-1276, July. [Downloadable!] (restricted)
  8. Giannakis, D. & T. Jamasb & Pollitt, M.G., 2004. "Benchmarking and incentive regulation of quality of service: an application to the UK electricity distribution utilities," Cambridge Working Papers in Economics 0408, Faculty of Economics, University of Cambridge. [Downloadable!]
  9. Yin-Fang Zhang & David Parker & Colin Kirkpatrick, 2008. "Electricity sector reform in developing countries: an econometric assessment of the effects of privatization, competition and regulation," Journal of Regulatory Economics, Springer, vol. 33(2), pages 159-178, April. [Downloadable!] (restricted)
    Other versions:
  10. Christian Growitsch & Jamasb, T. & Pollitt, M., 2005. "Quality of Service, Efficiency and Scale in Network Industries: An analysis of European electricity distribution," Cambridge Working Papers in Economics 0538, Faculty of Economics, University of Cambridge. [Downloadable!]
    Other versions:
  11. Newbery, D., 2002. "Issues and Options for Restructuring Electricity Supply Industries," Cambridge Working Papers in Economics 0210, Faculty of Economics, University of Cambridge. [Downloadable!]
  12. Burns, Philip & Weyman-Jones, Thomas G, 1996. "Cost Functions and Cost Efficiency in Electricity Distribution: A Stochastic Frontier Approach," Bulletin of Economic Research, Blackwell Publishing, vol. 48(1), pages 41-64, January.
  13. Dag Morten Dalen, 1998. "Yardstick Competition and Investment Incentives," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 7(1), pages 105-126, 03. [Downloadable!] (restricted)
  14. Paul L. Joskow, 2006. "Incentive Regulation for Electricity Networks," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 4(2), pages 3-9, 07. [Downloadable!]
  15. Stephen Thomas, 2004. "Evaluating the British Model of Electricity Deregulation," Annals of Public and Cooperative Economics, Blackwell Publishing, vol. 75(3), pages 367-398, 09. [Downloadable!] (restricted)
  16. Estache, Antonio & Guasch, Jose-Luis & Trujillo, Lourdes, 2003. "Price caps, efficiency payoffs, and infrastructure contract renegotiation in Latin America," Policy Research Working Paper Series 3129, The World Bank. [Downloadable!]
  17. David Sappington, 2005. "Regulating Service Quality: A Survey," Journal of Regulatory Economics, Springer, vol. 27(2), pages 123-154, November. [Downloadable!] (restricted)
  18. Giannakis, Dimitrios & Jamasb, Tooraj & Pollitt, Michael, 2005. "Benchmarking and incentive regulation of quality of service: an application to the UK electricity distribution networks," Energy Policy, Elsevier, vol. 33(17), pages 2256-2271, November. [Downloadable!] (restricted)
  19. Tooraj Jamasb & Michael Pollitt, 2005. "Electricity Market Reform in the European Union - Review of Progress toward Liberalization & Integration," Working Papers 0503, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research. [Downloadable!]
    Other versions:
  20. Ajodhia, Virendra & Hakvoort, Rudi, 2005. "Economic regulation of quality in electricity distribution networks," Utilities Policy, Elsevier, vol. 13(3), pages 211-221, September. [Downloadable!] (restricted)
  21. 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)
  22. Domah, P. & Pollitt, M.G., 2000. "The Restructuring and Privatisation of Electricity Distribution and Supply Businesses in England and Wales: A Social Cost Benefit Analysis," Cambridge Working Papers in Economics 0007, Faculty of Economics, University of Cambridge. [Downloadable!]
  23. Pollitt, Michael, 2005. "The role of efficiency estimates in regulatory price reviews: Ofgem's approach to benchmarking electricity networks," Utilities Policy, Elsevier, vol. 13(4), pages 279-288, December. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Yu, W. & Jamasb, T. & Pollitt, M.G., 2008. "Does Weather Explain the Cost and Quality? An Analysis of UK Electricity Distribution Companies," Cambridge Working Papers in Economics 0858, Faculty of Economics, University of Cambridge. [Downloadable!]
  2. Pollitt, M., 2007. "Evaluating the evidence on electricity reform: Lessons for the South East Europe (SEE) market," Cambridge Working Papers in Economics 0756, Faculty of Economics, University of Cambridge. [Downloadable!]
    Other versions:
  3. Francisco J. Ramos-Real & Beatriz Tovar & Mariana Iootty & Edmar Fagundes de Almeida & Helder Jr. Queiroz Pinto, 2008. "The evolution and main determinants of productivity in Brazilian electricity distribution 1998-2005: an empirical analysis," Working Papers 2008-41, FEDEA. [Downloadable!]
    Other versions:
Statistics
Access and download statistics

Did you know? You too can volunteer for RePEc, for example by providing information about publications in your institution.

This page was last updated on 2009-11-16.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.