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An assessment of Incentive Regulation in electricity networks: The story so far

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  • Haikel Khalfallah

    (équipe EDDEN - PACTE - Pacte, Laboratoire de sciences sociales - UPMF - Université Pierre Mendès France - Grenoble 2 - UJF - Université Joseph Fourier - Grenoble 1 - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - CNRS - Centre National de la Recherche Scientifique)

Abstract

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.

Suggested Citation

  • Haikel Khalfallah, 2013. "An assessment of Incentive Regulation in electricity networks: The story so far," Working Papers halshs-00931301, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00931301
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00931301
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    References listed on IDEAS

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    1. Joskow Paul L., 2008. "Incentive Regulation and Its Application to Electricity Networks," Review of Network Economics, De Gruyter, vol. 7(4), pages 1-14, December.
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    3. Jamasb, Tooraj & Pollitt, Michael, 2007. "Incentive regulation of electricity distribution networks: Lessons of experience from Britain," Energy Policy, Elsevier, vol. 35(12), pages 6163-6187, December.
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    Cited by:

    1. Rita, Rui & Marques, Vitor & Bárbara, Diogo & Chaves, Inês & Macedo, Pedro & Moutinho, Victor & Pereira, Mariana, 2023. "Crossing non-parametric and parametric techniques for measuring the efficiency: Evidence from 65 European electricity Distribution System Operators," Energy, Elsevier, vol. 283(C).

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    Keywords

    incentive regulation; electricity; cost efficiency; quality; innovation;
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