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Issues and options in the economic regulation of European network security


Jamasb, T and Nepal, R, Issues and options in the economic regulation of European network security, Competition and Regulation in Network Industries, 16, (1) pp. 2-22. ISSN 1783-5917 (2015) [Refereed Article]

Copyright Statement

Copyright 2015 SAGE Publications

DOI: doi:10.1177/178359171501600101


Incentive regulation needs to adapt to the emerging changes in the operating environment of the electricity networks and take into account the security of these. Th is paper assesses the current issues and options in economic regulation of network security across the European electricity systems. An output-oriented incentive regulatory approach combines the effi ciency promoting mechanisms in a revenue cap framework with output-based incentives such as better provision of network security. Th us, incentive regulation is destined to move from pursuing the optimal to being more practical. Th e RIIO regulatory framework in the UK and the service quality regulation in Italy provide good examples of application of output-based regulation. We also propose an output-based approach for regulation of network security, which accounts for the risks from natural, accidental and malicious threats. We conclude that regulation for network security may also require looking beyond economic network regulation and focus on the wider security policy and regulation interface considering the risks facing the electricity networks.

Item Details

Item Type:Refereed Article
Keywords:incentive regulaton, output based, exceptional events
Research Division:Economics
Research Group:Applied economics
Research Field:Industry economics and industrial organisation
Objective Division:Economic Framework
Objective Group:Microeconomics
Objective Field:Industrial organisations
UTAS Author:Nepal, R (Dr Rabindra Nepal)
ID Code:129889
Year Published:2015
Deposited By:TSBE
Deposited On:2018-12-20
Last Modified:2019-01-21

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