Online Event

Incentive regulation to promote efficiency and innovation: a consultation

24 November 2023

The Florence School of Regulation (FSR) is conducting a public consultation on behalf of ACER, on a possible scheme for incentive-based regulation of networks to promote efficiency and innovation in addressing electricity system needs.

Background

The energy transition challenges existing electricity networks. Operators need to expand rapidly the capacity of their networks to integrate increasing amounts of renewable energy sources and new uses on the demand side, while preserving cost-effectiveness and avoiding an escalation in revenue requirements that would penalize network users. Innovation is essential in ensuring that these two goals are achieved together. However, given the regulated nature of the business of network operators, an evolution of the regulatory framework may be needed. In particular, regulation should provide network operators with adequate incentives to respond to the challenges posed by the energy transition.

A scheme for incentive-based regulation to promote energy efficiency and innovation

This scheme, which was presented first at the June 2023 Copenhagen Forum and later detailed in a report produced for ACER, will be illustrated during this consultation webinar open to all stakeholders. After the presentation of the scheme by the FSR team, stakeholders will have the opportunity to raise questions and express their views with regard to the proposed scheme.

More details about the consultation, including the reference to the presentation in Copenhagen and a summary of the report prepared for ACER, can be found here.