Frontier presents two papers at Berlin Infrastructure Conference
Frontier (London & Cologne) contributed two papers to the 4th Conference on Applied Infrastructure Research, held at the Berlin University of Technology.
Dr. Christoph Riechmann, head of Frontier's Cologne office and Energy Practice Director and Misja Mikkers of the Dutch competition authority, NMa, discussed the link between: (i) the effectiveness of regulatory benchmarking in extracting information and providing efficiency incentives; and (ii) the policy framework within which the regulator operates. They find that a clear institutional framework and subsequent commitment by the regulator helped create an effective benchmarking regime in the Dutch energy networks sector. Regulatory benchmarking has been less effective in the UK electricity sector because the regulator has had a less clear mandate and because the regulator has only exposed a part of the network operators' cost - namely operating expenditure - to a benchmarking scrutiny.
Professor Ralph Turvey of the LSE and an Associate of Frontier Economics, in his presentation compared and proposed mechanisms for managing cross-border transmission capacity in European electricity markets with the ideal. Professor Turvey concluded that while multilateral mechanisms would improve existing arrangements, greater economic efficiency would be achieved through market integration.
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