Regulation of Energy Industries

  • Subhes C. Bhattacharyya


This chapter introduces the concepts related to the regulation of energy industries. It first presents the traditional regulation, followed by the modern concepts of regulation (incentive regulation). The pros and cons of each alternative is discussed as well.


Total Factor Productivity Equity Capital Capital Asset Price Model Incentive Regulation Yardstick Competition 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Alexander I, Harris C (2001) Incentive regulation and multi-year price controls: choice, constraints and calculations, SAFIR Workshop, New Delhi.
  2. Bakovic T, Tenenbaum B, Woolf F (2003) Regulation by contract: a new way to privatise electricity distribution? Energy and Mining Sector Board Discussion, Paper no. 7, World BankGoogle Scholar
  3. Beesley ME, Littlechild SC (1989) The regulation of privatised monopolies in the United Kingdom. Rand J Econ 20(3):454–472CrossRefGoogle Scholar
  4. Berg SV (undated) Introduction to the fundamentals of incentive regulation, In: Infrastructure regulation and market reform. Public Utility Research Center, University of FloridaGoogle Scholar
  5. Bernstein JI, Sappington DEM (1998) Setting the X factor in price cap regulation plans, NBER Working paper 6622, National Bureau of Economic Research, CambridgeGoogle Scholar
  6. Chong E (2004) Yardstick competition vs. individual incentive regulation: what has the theoretical literature to say? ATOM, University of Paris 1, ParisGoogle Scholar
  7. Comnes GA, Stoft S, Greene N, Hill LJ (1995) Performance-based ratemaking for electric utilities: review of plans and analysis of economic and resource plan issues, vol. 1. Lawrence Berkeley National Laboratory, University of California, CaliforniaGoogle Scholar
  8. Crew MA, Kleindorfer PR (1996) Price caps and revenue caps: incentives and disincentives for efficiency. In: Crew MA (ed) Pricing and regulatory innovations under increasing competition. Kluwer Academic Publishers, LondonGoogle Scholar
  9. Farrel MJ (1957) The measurement of productive efficiency. J R Stat Soc Ser A Gen Part III 120:253–281CrossRefGoogle Scholar
  10. Giulietti M, Price CW (2005) Incentive regulation and efficient pricing. Ann Public Coop Econ 76(1):121–149CrossRefGoogle Scholar
  11. Green R, Pardina MR (1999) Resetting price controls for private utilities: a manual for regulators. World Bank, Washington, DCGoogle Scholar
  12. Guasch JL, Spiller P (1999) Managing the regulatory process: design, concepts, issues and the Latin American and Caribbean story. World Bank, Washington, DCGoogle Scholar
  13. Intven H (ed) (2000) Telecommunication regulation handbook. World Bank, Washington, DCGoogle Scholar
  14. IPART (1999) Regulation of network service providers, Incentives and principles for regulation, Discussion paper DP32, Independent Pricing and Regulatory Tribunal of New South Wales, Australia .
  15. IPART (2001) Form of economic regulation for NSW electricity network charges, Discussion paper DP48, Independent Pricing and Regulatory Tribunal of New South Wales, Australia.
  16. Jamasb T, Pollitt M (2001) Benchmarking and regulation: international electricity experience. Utilities Policy 9:107–130CrossRefGoogle Scholar
  17. Kahn A (1989) The economics of regulation, principles and institutions. MIT Press, LondonGoogle Scholar
  18. King S (undated) Principles of price cap regulation. In: Infrastructure regulation and market reform. Public Utility Research Center, University of Florida.
  19. Lowry MN, Kaufmann L (1994) Price cap designer’s handbook. Pacific Economics Group, MadisonGoogle Scholar
  20. NARUC (2000) Performance based regulation for distribution utilities, The Regulatory Assistance Project. National Association of Regulatory Utilities CommissionGoogle Scholar
  21. Navarro P (1996a) The simple analytics of Performance-based ratemaking: a guide for the PBR regulator. Yale J Regul 13(105):105–161Google Scholar
  22. Navarro P (1996b) Seven basic rules for the PBR regulator. Elect J April:24–30.Google Scholar
  23. NER (2003) Economic regulation of transmission using incentive based regulation. National Economic Regulator, PretoriaGoogle Scholar
  24. Newbery DMG (1999) Privatisation, restructuring and regulation of network utilities. The MIT Press, MassachusettsGoogle Scholar
  25. Parmesano H, Rankin W, Nieto A, Irastorza V (2004) Classification and allocation methods for generation and transmission in Cost-of-Service studies. NERA, National Economic Research Associates, Los AngelesGoogle Scholar
  26. Ros AJ (2001) Principles and practice of price cap regulation: an application to the Peruvian context, NERA discussion paper, National Economic Research Associates, Washington, DCGoogle Scholar
  27. Shleifer A (1985) A theory of yardstick competition. Rand J Econ 16(3):319–327 AutumnCrossRefGoogle Scholar
  28. Shleifer A (2004) Understanding regulation. Eur Financ Manage 11(4):439–451CrossRefGoogle Scholar
  29. Swisher JN, Jannuzzi GM, Redlinger RY (1997) Tools and methods for integrated resource planning: Improving energy efficiency and protecting the environment. UCCEE, RisoGoogle Scholar
  30. Tenenbaum B, Lock R, Barker J (1992) Electricity privatisation: structural, competitive and regulatory options. Energy Policy, Dec, 1134–1160Google Scholar
  31. Viehoff I (1995) Evaluating RPI-X, NERA topics 17. National Economic Research Associates, LondonGoogle Scholar
  32. Viscusi WK, Harrington JE, Vernon JM (2005) Economics of regulation and anti-trust, 4th edn. The MIT Press, MassachusettsGoogle Scholar
  33. Voll S, Bhattacharyya SC, Juris A (1998) Cost of capital for privatised distribution companies: a working paper for a calculation for India, NERA Working paper, National Economic Research Associates, Washington, DCGoogle Scholar
  34. Weston F (2000) Charging for distribution utility services: issues in rate design, the regulatory assistance project.
  35. Weyman-Jones TG (1990) RPI-X price cap regulation: the price controls used in UK electricity. Utilities Policy, Oct:65–77Google Scholar
  36. Williamson B, Toft S (2001) The appropriate role of yardstick methods in regulation, NERA working paper, National Economic Research Associates, Washington, DCGoogle Scholar

Copyright information

© Springer-Verlag London Limited 2011

Authors and Affiliations

  1. 1.Centre for Energy, Petroleum and Mineral Law and PolicyUniversity of DundeeDundeeUK

Personalised recommendations