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Toward consumer-centric energy network regulation: Australia's experience

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  • Havyatt, David

Abstract

Understanding the objective of economic regulation as mimicking the process of competition, rather than the outcome of theoretical competitive markets, recognises the need for regulated energy transmission and distribution network service providers to respond to consumer preferences. The regulator, network service providers, and consumer advocates in Australia have conducted experiments on ways consumer preferences can shape regulatory proposals. These experiments demonstrate that agreements about regulatory proposals between the network service provider and a counterparty representing the interests of consumers are effective in ensuring that the proposal reflects consumer preferences. The paper demonstrates that in this process, consumers can also design output-oriented incentive schemes proposed by performance-based regulation.

Suggested Citation

  • Havyatt, David, 2022. "Toward consumer-centric energy network regulation: Australia's experience," Utilities Policy, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:juipol:v:78:y:2022:i:c:s0957178722000698
    DOI: 10.1016/j.jup.2022.101404
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    More about this item

    Keywords

    Consumer engagement; Negotiated settlement; Regulation;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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