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…
Étiqueté : cost efficiency
Investment and efficiency under incentive regulation: The case of the Norwegian electricity distribution networks
This EPRG paper analyses the relationship between investments and cost efficiency in the context of incentive regulation with ex-post regulatory treatment of investments using a panel dataset of 126 Norwegian distribution companies from 2004 to 2010.