Incentives for Efficiency in Grid Operations

Eivind Magnus

Chapter 6 in Electricity Market Reform in Norway, 2000, pp 121-138 from Palgrave Macmillan

Abstract: Abstract In a country like Norway, grid activities from the high-voltage transmission grid down to the low-voltage distribution nets account for nearly 50 per cent of total capital investments, and represent a major share of operating costs. As these are natural monopolies, the challenge is how to avoid the abuse of monopoly power. Internationally, there are two main traditions for regulating natural monopolies such as electricity transportation. One is self-regulation based on public ownership; the other is income regulation of private companies implemented and organised by a central or regional regulator. The Norwegian model as it has been developed during the 1990s seeks to combine these two traditions — what we could term income regulation of public companies.

Keywords: Efficiency Improvement; Spot Price; Regulation Period; Cost Condition; Natural Monopoly (search for similar items in EconPapers)
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-333-98274-7_6

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DOI: 10.1057/9780333982747_6

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