Conference on Network Service Regulation

Enel, the Italian electricity company, hosted a conference on "Comparative experiences in Network Services Regulation" in Rome at the end of March 2004. The conference examined experiences with privatisation, liberalisation and regulation in the energy and water sectors, comparing the Italian experience to that in other EU countries. The impact of EU Directives on progress in these areas was particularly highlighted. Ian Byatt, Senior Associate at Frontier (London), presented experiences in the UK water sector. Ian stressed how British style incentive regulation lead to a consistend outperformance of cost targets by the companies while investment and with it the quality of supply increased significantly over time. This is a clear indication that well-defined regulation does not impair on quality while consumers can enjoy prices that reflect improved efficiency.