Benchmarking in Regulation of Electricity Networks in Norway: An Overview

Abstract

In this paper, we give an overview of the Norwegian regulation of electricity networks after the Energy Act of 1990 and the deregulation of the electricity markets in 1991. We concentrate on the regulatory oversight of distribution network companies and regional transmission. Our main focus is on the benchmark-ing models, including the application of their results, in the three periods of incentive regulation that we have seen so far, after its introduction in 1997. We examine the various data envelopment analysis (DEA) models that have been used, and we describe specific issues driving their development and how the results have been used.