Germany is about to implement incentive regulation for electricity and gas networks. The respective Decree ("Anreizregulierungsverordnung", ARegV) requires the regulator, BNetzA, to complement incentive regulation by schemes to provide incentives to maintain network quality.  Without such schemes there is a risk that network operators cut cost at the expense of the quality of service. The details of this quality regulation are still open and a respective regulatory debate is imminent.

In a new article for Dow Jones Energy weekly (in German), Christoph Riechmann, head of Frontier's Cologne office, discusses international experience with the implementation of quality regulation in Europe and scopes the choices that are available for the deployment of quality regulation in Germany.