RPI-X@20: Comments on the Bibliography of Alistair Buchanan's Speech

Wed Apr 30 16:24:38 EDT 2008
By Graham Shuttleworth and advised by Dr. Michael Rosenzweig

EDF Energy commissioned a NERA team, led by Director Graham Shuttleworth and advised by Special Consultant Dr. Michael Rosenzweig, to review the papers that Alistair Buchanan, Chief Executive of Ofgem, had cited in an important speech delivered on 6 March 2008. In that speech, Mr. Buchanan expressed dissatisfaction with the current format of regulatory reviews, 20 years after the adoption on RPI-X regulation in Britain, and suggested that some papers might offer alternative methods. However, Mr. Shuttleworth and Dr. Rosenzweig found that the papers describing alternative regulatory procedures did not describe the underlying primary legal and procedural framework that is needed to make these methods work. These papers might indicate that introducing negotiated settlements would simplify regulatory procedures, but they do not explain how the interested parties can only reach negotiated settlements if a detailed primary regulatory procedure gives them a very clear idea of the outcome they would receive otherwise.