On the Role of International Benchmarking of Electricity Transmission System Operators facing significant investment requirements

Gert Brunekreeft

No 12, Bremen Energy Working Papers from Bremen Energy Research

Abstract: Electricity networks currently face massive investment requirements. This paper argues that, given the investment requirements, (international) benchmarking is not an adequate tool for the regulation of transmission system operators (TSO). Errors in the outcomes of benchmarking will likely distort network investment and therefore the costs of doing it wrong are high. The paper discusses options to reduce the weight of benchmarking in TSO regulation and options that do not rely on benchmarking at all. Overall, facing massive investment requirements, it seems desirable to switch to a regulatory system with ex-ante investment approval and away from ex-post benchmarking.

Keywords: electricity; network; regulation; benchmarking; uncertainty (search for similar items in EconPapers)
JEL-codes: D42 G00 L51 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2012-10
New Economics Papers: this item is included in nep-ene, nep-net and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Competition and Regulation in Network Industries, 13(1), 2011, 2-23

Downloads: (external link)
http://www.crninet.com/table_of_content.aspx?sy=2013&pn=1 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bei:00bewp:0012

Access Statistics for this paper

More papers in Bremen Energy Working Papers from Bremen Energy Research
Bibliographic data for series maintained by Anna Pechan ().