Similar to other European countries, mechanisms for the promotion of electricity generation from renewable energy sources (RESs) and combined heat and power (CHP) production have caused a significant growth in distributed generation (DG) in Spain. Low DG/RES penetration levels do not have a...

We empirically demonstrate a practical approach of efficiency evaluation with limited data availability in some regulated industries. We apply PCA-DEA for radial efficiency measurement to U.S. natural gas transmission companies in 2007. PCA-DEA reduces dimensions of the optimization problem...

Price caps (also known as RPI-X or incentive regulation) encourage regulated companies to cut costs through the profit incentive, by fixing revenues irrespective of the company's own costs for a certain period. However, eventually, cutting costs become less important than incurring costs to...

The paper studies the regulatory design in a industry where the regulated downstream provider of services to final consumers purchases the necessary inputs from an upstream supplier. The model is closely inspired by the UK regulatory mechanism for the railway network. Its philosophy is one of...

In order to achieve overall economic efficiency, incentive regulation of electricity distribution utilities must address two important and inter-related issues. First, the utilities’ allowed revenues need to be set at correct levels. Second, the access charging mechanism by which the utilities...