Future options for retail electricity regulation

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Client Power NI
Dates 2014
Service(s)Policy & Economics, Regulation & Competition
CEPA advised Power NI (PNI) on alternative regulatory regimes that could potentially be applied to the retail electricity sector in Northern Ireland (NI) as alternatives to current price control arrangements.

As part of this analysis, CEPA has undertaken a high-level assessment of the current price control based regulatory regime in Northern Ireland, competition in the market and set out the case for changing this to a lighter touch approach. This would help to highlight the positive consumer outcomes that alternative regimes might be able to deliver over the current arrangements in a retail market now open to competition.

Following this, alternative regimes have been identified from reviewing other sectors and countries and their applicability in Northern Ireland. This has included interim regimes (such as default tariffs) as effective competition develops. The output of this project was a short report, part of which has been shared with the Utility Regulator (NIAUR).