The Regulation of Investment in Utilities: Concepts and Applications
This paper reviews the common approaches adopted by regulators to the inclusion and valuation of investment in the regulatory asset base and the allocation of costs of investment between different users as well as between connection and usage charg...
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| Format: | Publication |
| Language: | English en_US |
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Washington, DC: World Bank
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2005/01/6426903/regulation-investment-utilities-concepts-applications http://hdl.handle.net/10986/7293 |
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okr-10986-72932021-04-23T14:02:28Z The Regulation of Investment in Utilities: Concepts and Applications Alexander, Ian Harris, Clive ACCELERATED DEPRECIATION ACCOUNTING AFFILIATED ORGANIZATIONS AIRPORT PRICING ASSETS BENCHMARK BENCHMARKING BENCHMARKS CAPITAL EXPENDITURE CAPITAL INVESTMENTS COMPLIANCE COSTS CONSUMERS COST OF CAPITAL DEBT DEMAND MANAGEMENT DISTRIBUTED GENERATION ECONOMIC REGULATION ECONOMICS ECONOMIES OF SCALE ECONOMISTS EFFICIENCY SAVINGS ELECTRICITY DISTRIBUTION ELECTRICITY TRANSMISSION ENERGY MARKETS ENVIRONMENTAL ENVIRONMENTAL IMPACTS ENVIRONMENTAL REQUIREMENTS ENVIRONMENTAL TARGETS FINANCIAL MARKETS FIXED COSTS GAS GAS DISTRIBUTION GAS REGULATOR GENERATING CAPACITY GENERATION CAPACITY INCOME INEFFICIENCY INFRASTRUCTURE INDUSTRIES INFRASTRUCTURE SECTORS INVESTMENT DECISIONS INVESTMENT NEEDS INVESTMENT PROGRAMS INVESTMENT REGULATION LEGAL STATUS LOGGING MAINTENANCE COSTS NATURAL MONOPOLIES NPV OPERATING COSTS OPPORTUNITY COST OPTION VALUE PORTFOLIO POWER TRANSMISSION PRICE CAP PRICE CAP REGULATION PRICE CAPS PRICE CONTROL PERIOD PRICE CONTROLS PRICE LEVELS PRIVATE CAPITAL PRIVATE CAPITAL FLOWS PRIVATE SECTOR PRIVATIZATION PUBLIC UTILITIES QUALITY MEASURES QUALITY STANDARDS RATE OF RETURN RATES OF RETURN REGIONAL TRANSMISSION REGULATED UTILITIES REGULATED UTILITY REGULATION OF INVESTMENT REGULATORS REGULATORY AGENCIES REGULATORY APPROACHES REGULATORY FRAMEWORK REGULATORY PROCESS REGULATORY REGIMES REGULATORY SYSTEM REGULATORY SYSTEMS REGULATORY TREATMENT REVENUE CAPS SANITATION SAVINGS SERVICE PROVIDERS SERVICE QUALITY TRANSMISSION COMPANY TRANSMISSION GRID TRANSMISSION PRICING UNIT COST UTILITIES VALUATION VARIABLE COSTS WATER DISTRIBUTION This paper reviews the common approaches adopted by regulators to the inclusion and valuation of investment in the regulatory asset base and the allocation of costs of investment between different users as well as between connection and usage charges. The former set of issues are key to the creation of incentives for companies to undertake efficient least-cost investment while the latter address the key concern of how revenues are recovered (and the associated risks for the operator). By understanding these issues and how they relate to the investments that are needed in a sector, regulators have an opportunity to design regimes better able to promote necessary investment. Drawing on a worldwide series of case studies from across the regulated sectors the paper illustrates the various approaches to regulating investment and some of the practical implementation problems that are faced. This allows some tentative suggestions for the design of practical investment regimes to be developed. 2012-06-06T18:25:06Z 2012-06-06T18:25:06Z 2005 http://documents.worldbank.org/curated/en/2005/01/6426903/regulation-investment-utilities-concepts-applications 978-0-8213-6152-8 http://hdl.handle.net/10986/7293 English en_US World Bank Working Paper No. 52 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research :: Publication |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCELERATED DEPRECIATION ACCOUNTING AFFILIATED ORGANIZATIONS AIRPORT PRICING ASSETS BENCHMARK BENCHMARKING BENCHMARKS CAPITAL EXPENDITURE CAPITAL INVESTMENTS COMPLIANCE COSTS CONSUMERS COST OF CAPITAL DEBT DEMAND MANAGEMENT DISTRIBUTED GENERATION ECONOMIC REGULATION ECONOMICS ECONOMIES OF SCALE ECONOMISTS EFFICIENCY SAVINGS ELECTRICITY DISTRIBUTION ELECTRICITY TRANSMISSION ENERGY MARKETS ENVIRONMENTAL ENVIRONMENTAL IMPACTS ENVIRONMENTAL REQUIREMENTS ENVIRONMENTAL TARGETS FINANCIAL MARKETS FIXED COSTS GAS GAS DISTRIBUTION GAS REGULATOR GENERATING CAPACITY GENERATION CAPACITY INCOME INEFFICIENCY INFRASTRUCTURE INDUSTRIES INFRASTRUCTURE SECTORS INVESTMENT DECISIONS INVESTMENT NEEDS INVESTMENT PROGRAMS INVESTMENT REGULATION LEGAL STATUS LOGGING MAINTENANCE COSTS NATURAL MONOPOLIES NPV OPERATING COSTS OPPORTUNITY COST OPTION VALUE PORTFOLIO POWER TRANSMISSION PRICE CAP PRICE CAP REGULATION PRICE CAPS PRICE CONTROL PERIOD PRICE CONTROLS PRICE LEVELS PRIVATE CAPITAL PRIVATE CAPITAL FLOWS PRIVATE SECTOR PRIVATIZATION PUBLIC UTILITIES QUALITY MEASURES QUALITY STANDARDS RATE OF RETURN RATES OF RETURN REGIONAL TRANSMISSION REGULATED UTILITIES REGULATED UTILITY REGULATION OF INVESTMENT REGULATORS REGULATORY AGENCIES REGULATORY APPROACHES REGULATORY FRAMEWORK REGULATORY PROCESS REGULATORY REGIMES REGULATORY SYSTEM REGULATORY SYSTEMS REGULATORY TREATMENT REVENUE CAPS SANITATION SAVINGS SERVICE PROVIDERS SERVICE QUALITY TRANSMISSION COMPANY TRANSMISSION GRID TRANSMISSION PRICING UNIT COST UTILITIES VALUATION VARIABLE COSTS WATER DISTRIBUTION |
| spellingShingle |
ACCELERATED DEPRECIATION ACCOUNTING AFFILIATED ORGANIZATIONS AIRPORT PRICING ASSETS BENCHMARK BENCHMARKING BENCHMARKS CAPITAL EXPENDITURE CAPITAL INVESTMENTS COMPLIANCE COSTS CONSUMERS COST OF CAPITAL DEBT DEMAND MANAGEMENT DISTRIBUTED GENERATION ECONOMIC REGULATION ECONOMICS ECONOMIES OF SCALE ECONOMISTS EFFICIENCY SAVINGS ELECTRICITY DISTRIBUTION ELECTRICITY TRANSMISSION ENERGY MARKETS ENVIRONMENTAL ENVIRONMENTAL IMPACTS ENVIRONMENTAL REQUIREMENTS ENVIRONMENTAL TARGETS FINANCIAL MARKETS FIXED COSTS GAS GAS DISTRIBUTION GAS REGULATOR GENERATING CAPACITY GENERATION CAPACITY INCOME INEFFICIENCY INFRASTRUCTURE INDUSTRIES INFRASTRUCTURE SECTORS INVESTMENT DECISIONS INVESTMENT NEEDS INVESTMENT PROGRAMS INVESTMENT REGULATION LEGAL STATUS LOGGING MAINTENANCE COSTS NATURAL MONOPOLIES NPV OPERATING COSTS OPPORTUNITY COST OPTION VALUE PORTFOLIO POWER TRANSMISSION PRICE CAP PRICE CAP REGULATION PRICE CAPS PRICE CONTROL PERIOD PRICE CONTROLS PRICE LEVELS PRIVATE CAPITAL PRIVATE CAPITAL FLOWS PRIVATE SECTOR PRIVATIZATION PUBLIC UTILITIES QUALITY MEASURES QUALITY STANDARDS RATE OF RETURN RATES OF RETURN REGIONAL TRANSMISSION REGULATED UTILITIES REGULATED UTILITY REGULATION OF INVESTMENT REGULATORS REGULATORY AGENCIES REGULATORY APPROACHES REGULATORY FRAMEWORK REGULATORY PROCESS REGULATORY REGIMES REGULATORY SYSTEM REGULATORY SYSTEMS REGULATORY TREATMENT REVENUE CAPS SANITATION SAVINGS SERVICE PROVIDERS SERVICE QUALITY TRANSMISSION COMPANY TRANSMISSION GRID TRANSMISSION PRICING UNIT COST UTILITIES VALUATION VARIABLE COSTS WATER DISTRIBUTION Alexander, Ian Harris, Clive The Regulation of Investment in Utilities: Concepts and Applications |
| relation |
World Bank Working Paper No. 52 |
| description |
This paper reviews the common approaches
adopted by regulators to the inclusion and valuation of
investment in the regulatory asset base and the allocation
of costs of investment between different users as well as
between connection and usage charges. The former set of
issues are key to the creation of incentives for companies
to undertake efficient least-cost investment while the
latter address the key concern of how revenues are recovered
(and the associated risks for the operator). By
understanding these issues and how they relate to the
investments that are needed in a sector, regulators have an
opportunity to design regimes better able to promote
necessary investment. Drawing on a worldwide series of case
studies from across the regulated sectors the paper
illustrates the various approaches to regulating investment
and some of the practical implementation problems that are
faced. This allows some tentative suggestions for the design
of practical investment regimes to be developed. |
| format |
Publications & Research :: Publication |
| author |
Alexander, Ian Harris, Clive |
| author_facet |
Alexander, Ian Harris, Clive |
| author_sort |
Alexander, Ian |
| title |
The Regulation of Investment in Utilities: Concepts and Applications |
| title_short |
The Regulation of Investment in Utilities: Concepts and Applications |
| title_full |
The Regulation of Investment in Utilities: Concepts and Applications |
| title_fullStr |
The Regulation of Investment in Utilities: Concepts and Applications |
| title_full_unstemmed |
The Regulation of Investment in Utilities: Concepts and Applications |
| title_sort |
regulation of investment in utilities: concepts and applications |
| publisher |
Washington, DC: World Bank |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2005/01/6426903/regulation-investment-utilities-concepts-applications http://hdl.handle.net/10986/7293 |
| _version_ |
1764399597615054848 |