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...

Contents -- Introduction -- Part I Incentive regulation: aligning the interests of the operators with the interests of their customers -- 1. The British reference model / Vincent Rious and Nicolò Rossetto -- 2. Continental incentive regulation / Vincent Rious and Nicolò Rossetto -- Part II...

The UK model of incentive regulation of power grids was at one time the most advanced, and elements of it were adopted throughout the EU. This model worked well, particularly in the context of limited investment and innovation, a single and strong regulatory authority, and limited coordination...