An assessment of the tools of incentive regulation in electricity networks

Journal title ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT
Author/s Haikel Khalfallah, Jean-Michel Glachant
Publishing Year 2012 Issue 2012/1 Language English
Pages 32 P. 121-152 File size 483 KB
DOI 10.3280/EFE2012-001008
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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.

Keywords: Incentive regulation, electricity network, cost efficiency, quality, innovation

Jel codes: L25, L51, L94

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Haikel Khalfallah, Jean-Michel Glachant, An assessment of the tools of incentive regulation in electricity networks in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 1/2012, pp 121-152, DOI: 10.3280/EFE2012-001008