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Assessing energy supply profitability: does a margins approach make sense?




Depiction of REPowerEU: managing energy supply and prices in the EU
10 minute read

REPowerEU: managing energy supply and prices in the EU

The current spikes in electricity and gas prices are raising concerns at the EU and national level. To mitigate their impact, while also increasing security of supply, the European Commission has introduced a variety of measures, which have been (and are being) applied at a national level. We ask how these measures should best be implemented to ensure their success, looking in particular at the case of Italy. Read More

Depiction of Where next for RPI – X?
11 minute read

Where next for RPI – X?

With concerns around company outperformance and information asymmetries playing strongly on the minds of economic regulators, the UK regulatory model has moved on from the ‘fixed price’ paradigm of ‘RPI - X’. Regulators have looked to set more challenging price settlements, while also rebalancing risks within regulatory contracts to protect against windfalls. The model now resembles the rate-of-return approach it was intended to replace. Is this the right way forward? And what alternatives might there be? Read More