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The Future of Electricity Distribution Regulation: Lessons from International Experience.

By P.H.L. Nillesen

Abstract

This thesis contains five essays on the regulation of electricity distribution networks, each presenting a different point of view. Two essays use US data to demonstrate that incentive-based regulation has valuable application within a management setting and can lead to gaming behaviour within a regulatory setting. One essay discusses the lessons that can be drawn from the failed first electricity distribution price control review in the Netherlands. One essay presents the views of 75 international regulation managers and gives recommedations on ways to improve the regulatory quality and process. The final essay analyses the economic consequences of the forced ownership unbundling of the electricity distribution networks in 1998 in New Zealand, and draws lessons for future structural remedies that may be sought in other countries.

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