Scandinavian Working Papers in Business Administration
FE rapport,
University of Gothenburg, Department of Business Administration
No 2003-398: Nätnyttomodellens regleringsprincip – En kritisk analys med fokus på samhällsekonomisk effektivitet på kort och lång sikt
Björn Lantz
Additional contact information
Björn Lantz: Department of Business Administration, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 Göteborg, Sweden
Abstract: The Swedish Energy Agency is currently developing a performance assessment model for grid companies. The model relates total revenue to a standard cost based on a fictitious grid. This paper discusses a major theoretical disadvantage of this regulation principle, i.e. that the short and long term perspective is mixed. The result may be that a regulated actor compensates short term inefficiency with long term inefficiency. By measuring short and long term efficiency separately, this paper shows how this disadvantage easily can be eliminated.
Keywords: Electricity distribution; regulation theory; efficiency
22 pages, May 2, 2003
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