Case details

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Sector enquiries, recommendations, and opinions
Case reference
EPR/2014/27
Title
Commented on the proposal for an Electricity Transport Network Development and Investment Plan for the period 2014-2023
Sector
  • Energy and Fuels
Activity (NACE)
  • D - Electricity, gas, steam, cold and hot water and cold air
Case origin
Regulatory agencies
Competition impact assessment?
Cooperation with sector regulators
  • ERSE - Regulatory Authority for Energy Services
Status
Closed
Summary of the case
In April 2013, the AdC commented on the proposal for an Electricity Transport Network Development and Investment Plan for the period 2014-2023 (PDIRT-E 2013). The AdC noted that the current remuneration model for network investments, as well as the risk-sharing model, results in a potential incentive to over-investment. To that extent, the AdC identified that the proposed investments should be evaluated very carefully. In this regard, it proposed to ERSE to consider a possible modification of the regulatory model, in order to allow a less asymmetrical risk sharing and incentives that do not lead to over investment. In order to maintain the current asset regulation model, in which the investor is immune from risk, it was proposed that the remuneration of regulated assets be closer to the remuneration of risk-free investments.
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