Energy networks play a key role in transporting energy between energy producers and consumers, typically as a monopoly activity in an area, with their costs comprising a significant portion of consumers’ bills. As a result, energy network revenues and tariffs are set by European energy regulators to help ensure value for money and security of supply. There is also a focus on incentivising a high quality network service.

Energy regulators must carefully evaluate the costs of regulated companies to determine a fair return on capital while ensuring that customers do not pay more than necessary. This allowed revenue (whose calculation methodology is determined nationally) is then recovered via network tariffs, themselves carefully designed to reflect the costs of serving network users. One of the regulatory tools that energy regulators can use to compare and determine the efficiency of their network design and in setting allowed revenues is benchmarking. 

Designed for: 

Level B: Specialised Course

Experts from National Regulatory Authorities (NRAs) who want to improve their expertise and exchange experiences in network incentive regulation and benchmarking. Other experts from European Institutions (ACER, European Commission) are also invited to attend.

Programme overview:

  • Examine the principles of network incentive regulation and explore different national case studies in applying the incentive tools for gas and electricity, transmission and distribution networks, including practical experience on how to switch from cost plus to incentive based regulation
  • Discuss the link between incentive regulation and benchmarking and explore scientific approaches and different benchmarking methodologies
  • Discover practical examples and exchange experiences and lessons learnt on different benchmarking exercises, covering international, European and national benchmarking for gas and electricity networks at transmission and distribution levels  
  • Participate in exciting discussions and group work on comparing the similarities and differences in incentive regulation and benchmarking in gas and electricity, transmission and distribution 

Course Director: Mr Alexander Lüdtke-Handjery, Chairman of Ruling Chamber 4, BNetzA
Course Advisor: Prof. Tomás Gómez, Universidad Pontificia Comillas, Member of CEER Training Academy Advisory Board

Draft programme CEER Training on Network Incentive Regulation and Benchmarking