Does Electricity (and Heat) Network Regulation have anything to learn from Fixed Line Telecoms?
AbstractThe purpose of this paper is to examine the lessons from the recent history of telecoms deregulation for the electricity (and by implication heat) network regulation. We do this in the context of Ofgem’s RPIX@ 20 Review of energy regulation in the UK, which considers whether RPI-X based price regulation is fit for purpose after over 20 years of operation in energy networks. We examine the deregulation of fixed line telecoms in the UK and the lessons which it seems to suggest. We then apply the lessons to electricity networks in the context of a possible increase in distributed generation directly connected to local distribution networks. We conclude that there is the possibility of more parallels over time and suggest several implications of this for the regulation of electricity and heat networks.
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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0925.
Date of creation: 09 Jun 2009
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electricity; network regulation; distributed generation;
Find related papers by JEL classification:
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-28 (All new papers)
- NEP-NET-2009-07-28 (Network Economics)
- NEP-REG-2009-07-28 (Regulation)
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- Dan Corry & Anna Valero & John Van Reenen, 2011. "UK Economic Performance Since 1997: Growth, Productivity and Jobs," CEP Special Papers 24, Centre for Economic Performance, LSE.
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