In his comment on our paper, John H. Herbert brings out an important issue: [N]o one (except KSS, as far as I know) has recommended using the bonds approach for forecasting. KSS however, does not reply on a well-founded statistical basis for their forecasting procedure: it is decidedly ad hoc....

Whether you are a climate change believer or skeptic, the time to argue has passed. The power sector must plan for a future where emissions of greenhouse gases can no longer be assumed to be costless.

For over two decades, policymakers and regulators in a number of countries around the world have been grappling with market reform, liberalisation, restructuring and privatisation issues. Although a great deal has been learned in the process and a blueprint for implementation has emerged,...