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Does electricity (and heat) network regulation have anything to learn from fixed line telecoms regulation?

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  • Pollitt, Michael

Abstract

The purpose of this paper is to examine the lessons from the recent history of telecoms deregulation for electricity (and by implication heat) network regulation. We do this in the context of Ofgem's RPI-X@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.

Suggested Citation

  • Pollitt, Michael, 2010. "Does electricity (and heat) network regulation have anything to learn from fixed line telecoms regulation?," Energy Policy, Elsevier, vol. 38(3), pages 1360-1371, March.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:3:p:1360-1371
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    References listed on IDEAS

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    Cited by:

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    2. Corry, Dan & Valero, Anna & Van Reenen, John, 2011. "UK economic performance since 1997: growth, productivity and jobs," LSE Research Online Documents on Economics 47521, London School of Economics and Political Science, LSE Library.
    3. Kelly, Scott & Pollitt, Michael, 2010. "An assessment of the present and future opportunities for combined heat and power with district heating (CHP-DH) in the United Kingdom," Energy Policy, Elsevier, vol. 38(11), pages 6936-6945, November.
    4. de Sépibus, Joëlle, 2013. "The Integration of Electricity from Renewable Energy Sources in the European Union Electricity Market – The case for “Smart Grids”," Papers 621, World Trade Institute.
    5. Lukas D. Schuchardt & Andreas Hoffjan & Hendrik Finger, 2015. "Strategisches Regulierungsmanagement in der anreizregulierten Netzwirtschaft," Schmalenbach Journal of Business Research, Springer, vol. 67(1), pages 70-101, February.
    6. Mohammadi, Mohammad Ali, 2021. "Estimating Possible Subsidy Effects in Broadband Services and Deployment," MPRA Paper 111962, University Library of Munich, Germany.
    7. Nele Friedrichsen & Christine Brandstätt & Gert Brunekreeft, 2014. "The need for more flexibility in the regulation of smart grids – stakeholder involvement," International Economics and Economic Policy, Springer, vol. 11(1), pages 261-275, February.
    8. Brinker, Laura & Satchwell, Andrew J., 2020. "A comparative review of municipal energy business models in Germany, California, and Great Britain: Institutional context and forms of energy decentralization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
    9. Serrano Calle, Silvia, 2015. "Increasing the Value of Telecom Operators with a Single EU Market," 26th European Regional ITS Conference, Madrid 2015 127180, International Telecommunications Society (ITS).
    10. Tooraj Jamasb & Manuel Llorca, 2019. "Energy Systems Integration: Economics of a New Paradigm," Working Papers EPRG 1903, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    11. Ngar-yin Mah, Daphne & Wu, Yun-Ying & Ronald Hills, Peter, 2017. "Explaining the role of incumbent utilities in sustainable energy transitions: A case study of the smart grid development in China," Energy Policy, Elsevier, vol. 109(C), pages 794-806.

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    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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