A NEW ERA OF YARDSTICK COMPETITION
The Netherlands is liberalising its energy markets. As part of this process, the Energy Regulator, DTe, is establishing a coherent framework for regulating natural monopolies, such as the electricity distribution businesses. DTe’s approach to this question has a number of innovative elements. For example, while in other countries comparative analysis merely informs the regulator’s judgement, benchmarking is central to price determination in the Netherlands. Furthermore DTe has announced that it will adopt explicit yardstick competition for the second regulatory period. Frontier Economics has been helping DTe throughout the regulatory process.