Energy | Article
Regulators as reflexive governance platforms
01 December 2011
Competition and Regulation in Network Industries, 2011, Vol. 12, No. 3, pp. 194-209
Network industries are now characterized by a regime of permanent innovation, while they continue to be fixed and sunk cost industries, due to the high level of investments in R&D and infrastructures. Players in these industries need to coordinate their investments; hence a threat of collusion. In the same time competition is fierce due to the opportunities brought by innovations; hence the permanent risk of catastrophic evolutions due to systemic interdependencies. To balance this dilemma between coordination and competition, independent third parties granted with capabilities to influence the “rules of the game” are needed. They need however to access critical information and knowledge. Coordination of investments requires figuring out the possible futures of the technology and of the industry. Avoiding oligopoly capture relies on an understanding of costs and business models. Since the relevant information and knowledge are dispersed and permanently evolving, regulators have to organize fora in which the stakeholders have incentives to reveal information, both because they need to learn from others, and because they seek to influence the industry regulation. Properly organized fora establish an open information competition among stakeholders, which can be penalized if they hide or distort information too much.
logo cadmus Read it on Cadmus

LATEST FSR PUBLICATIONS

Technical Report
Traditional approaches to electricity market design need adaptation to factor in the growing share of renewables in the energy mix. Energy transition in different parts of the world is taking [...]
Working Paper
In this paper, we investigate two main schemes for contracting demand-side flexibility by the Distribution System Operator (DSO) at the planning stage: a voluntary demand-side connection agreement where consumers offer [...]
Working Paper
This article will explain the characteristics of the financial side of energy markets. It aims to clarify why financial contracts are needed in the energy sector and how such transactions [...]
Other
The Russian invasion of Ukraine in February 2022 compounded an already difficult policy landscape characterised by rising energy prices, international supply chains’ disruptions, growing greenhouse gas emissions and exacerbating geopolitical [...]
Book
For more than a decade, hundreds of experts have gathered at the hills overlooking Florence to analyse the evolution of European transport policy and regulation at the call of the [...]
Working Paper
On 14th February 2022, the European Commission published a ‘Call for evidence for an impact assessment’ (Call for Evidence) and Public Consultation related to a new framework for standard essential [...]

Join our community

To meet, discuss and learn in the channel that suits you best.

scroll

top