An Assessment of the Tools of Incentive Regulation in Electricity Networks

Haikel Khalfallah () and Jean-Michel Glachant
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Haikel Khalfallah: LEPII-EDDEN - équipe EDDEN - LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - UPMF - Université Pierre Mendès France - Grenoble 2 - CNRS - Centre National de la Recherche Scientifique
Jean-Michel Glachant: EUI - European University Institute - Institut Universitaire Européen

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Abstract: Network regulation is playing an active role in a context of restructuring energy systems for long term transition to a smart grid. Regulation of network companies' activities should consider both cost efficiency objectives and other objectives such as quality and network innovation. It is in this context that incentive regulation tools are discussed and assessed in this paper. The aim is to show their key features and how they could be aligned with the main regulation goals. This paper concludes that they should be considered as complementary tools to address conflicting regulatory aspects in an efficient manner.

Keywords: electricity network; innovation; regulation (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (6)

Published in Economics and Policy of Energy and the Environment, 2012, 51 (1), pp.121-152

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00818109

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