The 2001-3 electricity distribution price control review in the Netherlands: regulatory process and consumer welfare

Paul Nillesen () and Michael Pollitt

Journal of Regulatory Economics, 2007, vol. 31, issue 3, 287 pages

Abstract: The outcome of the first electricity distribution price control review in The Netherlands did not deliver the savings initially suggested by the regulator (DTe). During the course of the first 3-year regulatory period, DTe revised the X-Factors four times. The impact on tariffs has been substantial. DTe initially announced in 2000 that savings would be equivalent to 25% of electric distribution revenues ( $${\texttt{C}\!\!\!\rule[2.3pt]{.4em}{.3pt}\!\!\rule[3.3pt]{. 4em}{.3pt}}$$ 2bn). However, final X-Factors in May 2003 resulted in savings of 10% of revenues. The total cost to consumers—when compared to the most probable outcome—has been $${\texttt{C}\!\!\!\rule[2.3pt]{.4em}{.3pt}\!\!\rule[3.3pt]{. 4em}{.3pt}}$$ 140 mln (7% of total revenues). Copyright Springer Science+Business Media, LLC 2007

Keywords: Regulation; Benchmarking; Consumer welfare; Regulatory process; X-Factor; D42; D60; K2; L5 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s11149-006-9014-8

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