To better reflect local grid conditions to consumers, many regulators are reforming their distribution network tariffs. In this literature review, we start by discussing the difference between short-run and long-run marginal pricing for distribution grids. Short-run marginal pricing is first-best but hard to implement in practice. Several authors therefore argue to that it makes sense to signal long-run marginal costs through a forward-looking charge based on a forward looking cost model. After, we compare four implementations of forward looking cost models that are currently being used in Great-Britain. Finally, we discuss the link between cost models and charge design. We formulate two conclusions. First, forward looking cost models are complex both for the regulator and the grid users. Designing cost-reflective distribution tariffs can help, but tariffs are regulatory tools with limitations. Second, we identify a gap in the literature. There is more academic work on charge design than on forward looking cost models.
• Measuring, reporting and then accounting for fugitive methane emissions will be an important part of any decarbonisation strategy in the future. Natural gas is a relatively low-carbon fossil fuel [...]
Over the past two years (2018-2019) European aviation has been confronted with serious capacity challenges and high levels of delay. Subsequently, the Covid-19 pandemic has revealed that the European airspace [...]
The recast of the Electricity Directive (EU) 2019/944 in the Clean Energy Package entitles the European Commission to adopt implementing acts specifying interoperability requirements and non-discriminatory and transparent procedures for [...]
Demand-side flexibility can be incentivised to reduce the need for investment in distribution grids either implicitly or explicitly. Implicit demand-side flexibility is when prosumers react to price signals triggered by [...]