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An assessment of Incentive Regulation in electricity networks: The story so far

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  • Haikel Khalfallah

    ()
    (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques [IEP] - Grenoble - CNRS : UMR5194 - Université Pierre-Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I)

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    Abstract

    Network regulation is playing an active role in a context of restructuring energy systems for long term transition to a smart grid. Regulation of network companies' activities should consider both cost efficiency objectives and other objectives such as quality and network innovation. It is in this context that incentive regulation tools are discussed and assessed in this paper. The aim is to show their key features and how they could be aligned with the main regulation goals. This paper concludes that they should be considered as complementary tools to address conflicting regulatory aspects in an efficient manner.

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    Bibliographic Info

    Paper provided by HAL in its series Working Papers with number halshs-00931301.

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    Date of creation: Dec 2013
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    Handle: RePEc:hal:wpaper:halshs-00931301

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    Related research

    Keywords: incentive regulation ; electricity ; cost efficiency ; quality ; innovation;

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    1. Haffner, Robert & Helmer, Dorine & van Til, Harry, 2010. "Investment and Regulation: The Dutch Experience," The Electricity Journal, Elsevier, Elsevier, vol. 23(5), pages 34-46, June.
    2. E. Brousseau & J-M- Glachant, 2011. "Regulators as Reflexive Governance Platforms," Competition and Regulation in Network Industries, Intersentia, Intersentia, vol. 12(3), pages 194-210, September.
    3. Leonardo Meeus & Marcelo Saguan & Jean-Michel Glachant & Ronnie Belmans, 2010. "Smart Regulation for Smart Grids," RSCAS Working Papers 2010/45, European University Institute.
    4. Niesten, Eva, 2010. "Network investments and the integration of distributed generation: Regulatory recommendations for the Dutch electricity industry," Energy Policy, Elsevier, vol. 38(8), pages 4355-4362, August.
    5. Jamasb, Tooraj & Pollitt, Michael, 2008. "Liberalisation and R&D in network industries: The case of the electricity industry," Research Policy, Elsevier, vol. 37(6-7), pages 995-1008, July.
    6. Ingo Vogelsang, 2005. "Electricity Transmission Pricing and Performance-Based Regulation," CESifo Working Paper Series 1474, CESifo Group Munich.
    7. Joskow Paul L., 2008. "Incentive Regulation and Its Application to Electricity Networks," Review of Network Economics, De Gruyter, De Gruyter, vol. 7(4), pages 1-14, December.
    8. Ajodhia, Virendra & Hakvoort, Rudi, 2005. "Economic regulation of quality in electricity distribution networks," Utilities Policy, Elsevier, vol. 13(3), pages 211-221, September.
    9. Carlo Cambini & Laura Rondi, 2010. "Incentive regulation and investment: evidence from European energy utilities," Journal of Regulatory Economics, Springer, vol. 38(1), pages 1-26, August.
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