Italian Regulation of Electricity Distribution and its Impact on Efficiency, Investments and Innovation: A Qualitative Assessment

S. Benedettini and Federico Pontoni ()

Competition and Regulation in Network Industries, 2013, vol. 14, issue 4, 365-385

Abstract: The increase in distributed generation and the pro-active role of consumers call for smarter networks. Consequently, regulation must change to promote this evolution. This article performs a critical overview of the Italian regulation of electricity distribution and its effectiveness in encouraging efficiency, quality and innovative investments. The analysis shows that the regulator has followed a building-block approach: throughout different regulatory periods, it has added new modules to its previous regulatory mechanism to take care of the constantly increasing set of objectives. This does not give DSOs a unitary and coherent regulatory framework and has led to the overlapping of different incentive mechanisms.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:sen:journl:v:14:i:4:y:2013:p:365-385

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