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Analyzing the returns and rate of return regulation of Finnish electricity distribution system operators 2015–2019

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  • Collan, Mikael
  • Savolainen, Jyrki
  • Lilja, Emma

Abstract

Electricity distribution prices have steeply increased in Finland since 2015. This research investigates the returns from the Finnish low-voltage electricity distribution business and compares them to returns from three European industry indices. The within-industry distribution of returns is also studied. The Finnish rate of return regulation model used is presented together with the level of allowed returns by the model, four changes to the model are proposed, and the effect of the four proposed changes on the returns allowed by the model are investigated.

Suggested Citation

  • Collan, Mikael & Savolainen, Jyrki & Lilja, Emma, 2022. "Analyzing the returns and rate of return regulation of Finnish electricity distribution system operators 2015–2019," Energy Policy, Elsevier, vol. 160(C).
    • Handle: RePEc:eee:enepol:v:160:y:2022:i:c:s0301421521005425
    DOI: 10.1016/j.enpol.2021.112677
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    References listed on IDEAS

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    Cited by:

    1. Pu‐yan Nie & Hong‐xing Wen & Chan Wang, 2023. "Price cap regulation under duopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1376-1382, April.

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