Agenda Archive

The CAPEX factor—part 1: dealing with uncertainty in setting CAPEX allowances

March 2016

A central component of incentive regulation is determining an efficient level of future capital expenditure (CAPEX), which is rarely a straightforward exercise. This article, the first in a series on the issues surrounding CAPEX regulation, focuses on what regulators and regulated companies can do to set reasonable CAPEX allowances in the face of considerable cost uncertainty

Water non-household retail markets: water choice to make

March 2016

The Water Act 2014 provides the legislative framework for non-household water retail competition to be introduced in England in April 2017. While water companies have been focusing on compliance with the new arrangements, they will soon be faced with a series of important strategic choices

Italian renaissance in regulation? Cost of capital for energy networks

March 2016

In December 2015, the Italian Regulatory Authority for Electricity Gas and Water (AEEGSI) concluded its review of the methodology for estimating the allowed rate of return for energy networks in Italy. What are the key features of AEEGSI’s decision?

Thoughts on UK economic regulation, 2016

March 2016

Martin Cave, Visiting Professor, Imperial College Business School, presents his views on the state of UK economic regulation. In doing so, he focuses on three core issues: regulatory independence, competition, and innovation. How can regulators assert their independence; what forms of competition are most promising in different sectors; and what does digitalisation mean for networks?