IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v80y2023ics0957178722001345.html
   My bibliography  Save this article

Embedding broader values in the regulatory model: An analysis of Ofgem's consumer value proposition for the natural gas distribution sector

Author

Listed:
  • Poulter, Helen
  • Bolton, Ronan

Abstract

Customer engagement processes introduced in energy network regulation in Britain have incentivised networks to think beyond economic efficiency. To this end, the regulator introduced a new incentive: the Consumer Value Proposition (CVP), allowing companies to use a monetised metric to gain a financial reward should their investments show additional social and environmental value for customers. Through a case study of the RIIO2 natural gas distribution price-control process, we construct a narrative history of the design and assessment of the CVP initiative. We discuss the challenges of implementing such an approach in practice and embedding it in the regulatory model.

Suggested Citation

  • Poulter, Helen & Bolton, Ronan, 2023. "Embedding broader values in the regulatory model: An analysis of Ofgem's consumer value proposition for the natural gas distribution sector," Utilities Policy, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:juipol:v:80:y:2023:i:c:s0957178722001345
    DOI: 10.1016/j.jup.2022.101470
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178722001345
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jup.2022.101470?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cave, Martin & Wright, Janet, 2021. "How can the concept of public value influence U.K. utility regulation?," Utilities Policy, Elsevier, vol. 72(C).
    2. Yates, Brian T. & Marra, Mita, 2017. "Social Return On Investment (SROI): Problems, solutions … and is SROI a good investment?," Evaluation and Program Planning, Elsevier, vol. 64(C), pages 136-144.
    3. Ben-Akiva, Moshe & McFadden, Daniel & Train, Kenneth, 2019. "Foundations of Stated Preference Elicitation: Consumer Behavior and Choice-based Conjoint Analysis," Foundations and Trends(R) in Econometrics, now publishers, vol. 10(1-2), pages 1-144, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Els Bekaert & Amelie F. Constant & Killian Foubert & Ilse Ruyssen, 2021. "Longing for Which Home: Evidence from Global Aspirations to Stay, Return or Migrate Onwards," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 21/1028, Ghent University, Faculty of Economics and Business Administration.
    2. Zgheib, Najib & Abou-Zeid, Maya & Kaysi, Isam, 2020. "Modeling demand for ridesourcing as feeder for high capacity mass transit systems with an application to the planned Beirut BRT," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 70-91.
    3. Tiziano Tempesta & Daniel Vecchiato, 2019. "Analysis of the Factors that Influence Olive Oil Demand in the Veneto Region (Italy)," Agriculture, MDPI, vol. 9(7), pages 1-17, July.
    4. Szabó, Andrea & Pham, Vinh, 2022. "Net neutrality and consumer demand in the video on-demand market," Information Economics and Policy, Elsevier, vol. 61(C).
    5. Mehmood, Asad & De Luca, Francesco & Quach, Hao, 2023. "Investigating how board gender diversity affects environmental, social and governance performance: Evidence from the utilities sector," Utilities Policy, Elsevier, vol. 83(C).
    6. Danaf, Mazen & Atasoy, Bilge & de Azevedo, Carlos Lima & Ding-Mastera, Jing & Abou-Zeid, Maya & Cox, Nathaniel & Zhao, Fang & Ben-Akiva, Moshe, 2019. "Context-aware stated preferences with smartphone-based travel surveys," Journal of choice modelling, Elsevier, vol. 31(C), pages 35-50.
    7. Meles, Tensay Hadush & Ryan, Lisa & Mukherjee, Sanghamitra C., 2022. "Heterogeneity in preferences for renewable home heating systems among Irish households," Applied Energy, Elsevier, vol. 307(C).
    8. Stefania Troiano & Daniel Vecchiato & Francesco Marangon & Tiziano Tempesta & Federico Nassivera, 2019. "Households’ Preferences for a New ‘Climate-Friendly’ Heating System: Does Contribution to Reducing Greenhouse Gases Matter?," Energies, MDPI, vol. 12(13), pages 1-19, July.
    9. Valenza, Giuseppe & Damiano, Rodolfo, 2023. "Sustainability reporting and public value: Evidence from port authorities," Utilities Policy, Elsevier, vol. 81(C).
    10. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part I. Macro-scale analysis of literature and integrative synthesis of empirical evidence from applied economics, experimental psychology and neuroimag," Journal of choice modelling, Elsevier, vol. 41(C).
    11. Krueger, Rico & Bierlaire, Michel & Daziano, Ricardo A. & Rashidi, Taha H. & Bansal, Prateek, 2021. "Evaluating the predictive abilities of mixed logit models with unobserved inter- and intra-individual heterogeneity," Journal of choice modelling, Elsevier, vol. 41(C).
    12. Beata Woźniak-Jęchorek, 2023. "Experiments in Modern Economics – Expansion and Technological and Institutional Innovations in the U.S," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 78-101.
    13. Lingling Xu & Xixi Yang & Linhai Wu & Xiujuan Chen & Lu Chen & Fu-Sheng Tsai, 2019. "Consumers’ Willingness to Pay for Food with Information on Animal Welfare, Lean Meat Essence Detection, and Traceability," IJERPH, MDPI, vol. 16(19), pages 1-22, September.
    14. Sinclair, Andrew, 2023. "Assessing the benefits of high-speed broadband: Lessons from Australia's National Broadband Network (NBN)," Information Economics and Policy, Elsevier, vol. 65(C).
    15. Bechler, Georg & Steinhardt, Claudius & Mackert, Jochen & Klein, Robert, 2021. "Product line optimization in the presence of preferences for compromise alternatives," European Journal of Operational Research, Elsevier, vol. 288(3), pages 902-917.
    16. Li, Zili & Washington, Simon P. & Zheng, Zuduo & Prato, Carlo G., 2023. "A Bayesian hierarchical approach to the joint modelling of Revealed and stated choices," Journal of choice modelling, Elsevier, vol. 47(C).
    17. Charles F. Manski, 2021. "Econometrics for Decision Making: Building Foundations Sketched by Haavelmo and Wald," Econometrica, Econometric Society, vol. 89(6), pages 2827-2853, November.
    18. Banke-Thomas, Aduragbemi & Nieuwenhuis, Sonja & Ologun, Adesoji & Mortimore, Gordon & Mpakateni, Martin, 2019. "Embedding value-for-money in practice: A case study of a health pooled fund programme implemented in conflict-affected South Sudan," Evaluation and Program Planning, Elsevier, vol. 77(C).
    19. Kemi Adeyeye & John Gallagher & Helena M. Ramos & Aonghus McNabola, 2022. "The Social Return Potential of Micro Hydropower in Water Networks Based on Demonstrator Examples," Energies, MDPI, vol. 15(18), pages 1-21, September.
    20. Tiziano Tempesta & Daniel Vecchiato & Federico Nassivera & Maria Bugatti & Biancamaria Torquati, 2019. "Consumers Demand for Social Farming Products: An Analysis with Discrete Choice Experiments," Sustainability, MDPI, vol. 11(23), pages 1-17, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:80:y:2023:i:c:s0957178722001345. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.