Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/103344 
Year of Publication: 
2012
Series/Report no.: 
Bremen Energy Working Papers No. 12
Publisher: 
Jacobs University Bremen, Bremer Energie Institut, Bremen
Abstract: 
Electricity networks currently face massive investment requirements. This paper argues that, given the investment requirements, (international) benchmarking is not an adequate tool for the regulation of transmission system operators (TSO). Errors in the outcomes of benchmarking will likely distort network investment and therefore the costs of doing it wrong are high. The paper discusses options to reduce the weight of benchmarking in TSO regulation and options that do not rely on benchmarking at all. Overall, facing massive investment requirements, it seems desirable to switch to a regulatory system with ex-ante investment approval and away from ex-post benchmarking.
Subjects: 
electricity
network
regulation
benchmarking
uncertainty
JEL: 
D42
G00
L51
Document Type: 
Working Paper

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