This study is intended to generate the foundation material needed by ACER to meet the prescriptions of the Commission Regulation (EU) 2017/460. Given that numerical information is also covered by the annual publications of the National Regulatory Authorities (NRAs) and transmission system operators (TSOs), this Report has focused mostly on methodological matters (except where numerical information is important for demonstrating different approaches).
The study’s report contains three parts - the first two cover the theory and issues surrounding the setting of regulated revenues for utility network companies, and the findings regarding current EU regulatory practice, respectively. The third part contains the questionnaire employed to obtain information on current EU regulatory practice preceded by summaries of the responses received and the situation applying for each NRA.
- reviews (both conceptually and in terms of practice currently applied in the EU) the key aspects of TSO revenue setting, namely the overall revenue control mechanism, the review and setting of expenditures, the regulatory asset base, the cost of capital and other regulatory incentive or adjustment mechanisms
- provides our evaluation of the methodological approaches based on the conceptual framework developed for this purpose