Regulating Beyond Price
By Bruno De Wachter / Published on Fri, 2006-11-24 11:00Integrating quality into price caps
The book Regulating Beyond Price by V.S. Ajodhia of the TU Delft (Netherlands) develops a framework for integrating quality into price caps.
Price cap regulation of electricity distribution networks is becoming increasingly popular. Price caps provide strong incentives for higher efficiency performance. At the same time however, there is a high risk that price caps lead to the degradation of quality. This book explores solutions for dealing with the quality problem and presents methodologies for combined price/quality benchmarking.
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