Regulation and Regulatory Risk in the Face of Large Transmission Investment

G. Brunekreeft and R. Meyer

Competition and Regulation in Network Industries, 2011, vol. 12, issue 2, 155-173

Abstract: Most transmission systems in Europe are currently in need of large network expansions, in particular to cope with increasing shares of load remote renewable energy sources. Given that the scope for further cost reductions is largely exhausted, we observe a paradigm shift into the direction of implementing more cost-pass-through elements into price-based regulation to strengthen the necessary investment incentives. Regulatory emphasis is shifting from cost-reductions to promoting investment. Obstacles to investments arise in particular from regulatory risk and efficiency risk. Addressing these topics, we recommend a move towards more cost-based approaches, with ex ante investment approval and less reliance on ex post benchmarking.

Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:sen:journl:v:12:i:2:y:2011:p:155-173

Access Statistics for this article

Competition and Regulation in Network Industries is currently edited by Hans Kluwer

More articles in Competition and Regulation in Network Industries from Intersentia
Bibliographic data for series maintained by Petra Van den Bempt ( this e-mail address is bad, please contact ).