Data Envelopment Analysis (DEA) based cost norms have attractive properties in the regulation of natural monopolies … that the regulation will induce socially optimal output levels. In this paper, we analytically and numerically examine the … that the eight-year catch-up period allowed in this regulation gives strong incentives to reduce costs since the firms can …

The factor X in the RPI-X regulation aims to adjust price or revenue allowances to changes in total factor productivity …

This paper contributes a theoretical analysis of the effects of different types of regulation on the timing of monopoly … base, we distinguish between price-based regulation and cost-based regulation. Under cost-based regulation, investment … triggers a change of regulated prices, whereas, under price-based regulation, investment does not affect them. To motivate …

This paper shows with a formal model that under monopoly regulation, OPEX-risk can be a source for a CAPEX-bias. If …-OPEX-CAPEX- share (FOCS) which is a variation of TOTEX-regulation and second, OPEX-mark-up. FOCS internalizes the CAPEX-bias and can be …

challenges not only huge investment in grid expansion and smart grid technologies is required, but also the network regulation … period, X-factor, and allowed rate of return. We conclude that in the era of smart grids, incentive regulation requires a … and smart grid technologies. To do so, incentive regulation should be supplemented by more innovative, investment …