Authors: Andrea Schweinsberg, Marcus Stronzik, Matthias Wissner
WIK-Consult reviewed cost benchmarking approaches in European energy sectors. What became obvious from the review of the various countries is that several regulators still lack sufficient power. When it comes to final decisions about certain parameters (as e.g. the frontier shift), the determination is often a result of a bargaining process between the industry and the designated Ministry rather than a decision made by the regulator based on sound and transparent economic analysis. This is in particular true when incentive regulations are established for the first time. The general lack of transparency worsens, when information for transmission networks is required.
