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Network regulation and regulatory institutional reform: Revisiting the case of Australia

Journal Article


Abstract


  • It is well-understood that the success of liberalizing the electricity supply industry depends crucially on the quality and design of the regulatory and institutional framework. This paper analyses the regulatory arrangements that underpin the work of the Australian Energy Regulator (AER). These arrangements are contrasted with the regulatory structure of electricity provision in Norway. A key difference between the reform processes in the two countries relates to the lack of privatization in Norway and the co-existence of private and publicly owned generators and distributors in Australia. This comparative analysis allows us to make several recommendations to improve regulatory arrangements in Australia. These include greater independence for the AER, better coordination among regulatory institutions, greater use of benchmarking analysis, greater customer involvement, and improving market transparency and privatization of government-owned corporations. However, the success of privatization will hinge upon the effectiveness of the regulatory environment. © 2014 Elsevier Ltd.

Publication Date


  • 2014

Citation


  • Nepal, R., Menezes, F., & Jamasb, T. (2014). Network regulation and regulatory institutional reform: Revisiting the case of Australia. Energy Policy, 73, 259-268. doi:10.1016/j.enpol.2014.05.037

Scopus Eid


  • 2-s2.0-84905406835

Start Page


  • 259

End Page


  • 268

Volume


  • 73

Abstract


  • It is well-understood that the success of liberalizing the electricity supply industry depends crucially on the quality and design of the regulatory and institutional framework. This paper analyses the regulatory arrangements that underpin the work of the Australian Energy Regulator (AER). These arrangements are contrasted with the regulatory structure of electricity provision in Norway. A key difference between the reform processes in the two countries relates to the lack of privatization in Norway and the co-existence of private and publicly owned generators and distributors in Australia. This comparative analysis allows us to make several recommendations to improve regulatory arrangements in Australia. These include greater independence for the AER, better coordination among regulatory institutions, greater use of benchmarking analysis, greater customer involvement, and improving market transparency and privatization of government-owned corporations. However, the success of privatization will hinge upon the effectiveness of the regulatory environment. © 2014 Elsevier Ltd.

Publication Date


  • 2014

Citation


  • Nepal, R., Menezes, F., & Jamasb, T. (2014). Network regulation and regulatory institutional reform: Revisiting the case of Australia. Energy Policy, 73, 259-268. doi:10.1016/j.enpol.2014.05.037

Scopus Eid


  • 2-s2.0-84905406835

Start Page


  • 259

End Page


  • 268

Volume


  • 73