We advised Energiavirasto, the Finnish regulator, in assessing how the revenue-cap methodology implemented in Finland accounts for inflation and identifying a way forward, taking into account the main features of the currently employed network regulation.
As part of the project, we
- conducted a literature review on the RAB setting and adjustment for inflation,
- identified and review the main methodologies employed at international level,
- assessed and compared different methodologies to adjust the rate-base for inflation in energy network regulation,
- investigated the equivalence of all identified approaches in term of compensation for regulated operators.
The results of our assessment were published by Energiavirasto as part of the price review consultation process and can be found here: https://energiavirasto.fi/documents/11120570/12766832/DFC_report+Final.pdf/d5a15937-109c-39ba-eaa7-5aee9c87f21b/DFC_report+Final.pdf?t=1696422499432
