It is widely accepted that the form of regulation applied to network service providers is a critical factor in determining the overall performance of the industry, and the level of benefits delivered to customers. In its recent issues paper, Pricing for Electricity Networks and Retail Supply, the Tribunal briefly discusses the incentive regulation model and issues relevant to the operation of this model. The Tribunal sought comments on how and when the benefits of efficiency and other gains might be shared by network service providers (NSPs), owners and their customers.
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