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Regulatory authorities in the European electricity sector use benchmarking techniques to determine the cost …
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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 …
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In the context of yardstick regulation with long-lived assets, the influence of investment cycles and thereof resulting heterogeneous capital structures on the ability to recover capital is quite important. Investment decisions are based on whole investment cycles of the infrastructure. It is...
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