Review of the Six European Regulatory Regimes, from an Investor’s Point of View
Advisory Services
The Situation
In 2001, a British utility asked NERA Director Graham Shuttleworth to review the regulatory regimes for electricity networks in six European Countries: Belgium, Italy, the Netherlands, Portugal, Spain and Switzerland.
NERA's Role
NERA's aim was to identify new methods and issues that might arise in UK regulation, and also to appraise the regulatory framework in each country from the point of view of potential investors. The report covered a number of topics, such as: the prospects for recovery of investments; the regulated firm’s ability to increase profits by increasing efficiency; and important regulatory risks that would need to be investigated further as part of a detailed investment appraisal process.
The Result
The utility adopted the report’s findings as a component of its overseas investment strategy.
