Evaluating the regulator: Winners and losers in the regulation of Spanish electricity distribution

The principal aim of this study is to evaluate the regulation of electricity distribution in Spain. To this end, we begin by analyzing whether the changes introduced by the regulator led distribution companies to improve their efficiency; we then address whether the reimbursements paid to the distri...

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Bibliographic Details
Published in:	Energy economics 2011-09, Vol.33 (5), p.807-815
Main Authors:	Blázquez-Gómez, Leticia, Grifell-Tatjé, Emili
Format:	Article
Language:	eng
Subjects:	Applied sciences Consumers Deregulation Economic data Economic regulation Economics Efficiency Efficiency analysis Efficiency analysis Regulation by incentives Spanish electricity distribution Yardstick competition Electric energy Electric power Electricity Electricity distribution Energy Energy consumption Energy economics Energy efficiency Energy market Energy policy Energy prices Energy resources Exact sciences and technology General, economic and professional studies Power supply Regulation Regulation by incentives Spain Spanish electricity distribution Studies Yardstick competition
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Summary:	The principal aim of this study is to evaluate the regulation of electricity distribution in Spain. To this end, we begin by analyzing whether the changes introduced by the regulator led distribution companies to improve their efficiency; we then address whether the reimbursements paid to the distribution companies are linked to efficiency; lastly, we examine whether consumers benefited from the efficiency improvements. We focus on Spain because the electricity regulator in that country is a longstanding pioneer in the implementation of incentive-based regulatory models. Our analysis was implemented using the regulatory model proposed by Bogetoft (1997) as a benchmark. The results show that the Spanish electricity regulator did not establish a link between efficiency and the reimbursements paid to electricity companies; in addition, the electricity companies benefited to the detriment of consumers. [Display omitted]
ISSN:	0140-9883 1873-6181