New Book from NERA Economic Consulting Examines Implications of the Changing Boundary Separating Regulated and Deregulated Segments of 'Network' Industries

06 September 2007

White Plains, New York/6 September 2007 -- Defining the appropriate demarcation between regulated and deregulated activities has been a vital -- and often controversial -- issue for governments, industry, and consumers for three decades. This has been particularly true for industries that touch consumers most directly, especially electricity but also other "network" industries such as water and transport. A new book from NERA Economic Consulting examines some of the key facets of the regulation vs. deregulation vs. reregulation debates in these industries.

In The Line in the Sand: The Shifting Boundary Between Markets and Regulation in Network Industries, following a retrospective foreword by Alfred Kahn, 30 of NERA's internationally recognized expert economists analyze shifts in the boundary between those industry segments that are subject to regulation and those facing market forces, the impact those shifts are having today, and the implications of these trends for future developments in key network industries, especially electricity.

"For decades, NERA's economists have been advising and testifying on regulatory issues, for companies, governments, and regulators both in the US and around the world," said Michael Rosenzweig, Chair of the Global Energy, Environment, and Network Industries Practice at NERA. "Around the world, we have been involved in one form or another in most of the cutting-edge efforts at substituting markets for regulation. While political passions often get in the way, we have always believed that the question of deregulation vs. regulation, and where the boundary between them should lie, is at its heart an economic one. The conversations and debates over aspects of regulatory and market economics we have had during the course of our work have sparked some unique insights into the economic issues, methodologies, and techniques that will influence and drive regulatory/deregulatory trends and policies in the years ahead."

The Line in the Sand: The Shifting Boundary Between Markets and Regulation in Network Industries explores some of the most important issues in regulatory economics today -- issues at the forefront of the shifts from regulation to deregulation (and sometimes back), including:

  • Are markets an appropriate way to discipline network industries?
  • How real is the nascent revival of nuclear power?
  • What are the long-term implications of changes in merger activity in the electricity industry?
  • What regulatory and market mechanisms are emerging to deal with the carbon issue in the electricity industry?
  • How can regulators and industry ensure security of power supply as market structures shift and evolve?
  • What are the most effective strategies for procuring competitive generation services by regulated power distribution companies?
  • Do customer choice and other economic techniques have a place in industries like water and transport?

The Line in the Sand: The Shifting Boundary Between Markets and Regulation in Network Industries reflects the thinking of some of the best minds in regulatory economics today. It is an invaluable tool for regulators, industry leaders, economists, academics, and others involved in the constantly changing regulatory issues in electricity and other network industries.

The Line in the Sand: The Shifting Boundary Between Markets and Regulation in Network Industries can be purchased from with a cover price of $39.95.

NERA Economic Consulting (, founded in 1961 as National Economic Research Associates, is a unit of the Oliver Wyman Group, an MMC company.

About NERA

NERA Economic Consulting ( is a global firm of experts dedicated to applying economic, finance, and quantitative principles to complex business and legal challenges. For more than six decades, we have been creating strategies, studies, reports, expert testimony, and policy recommendations for government authorities and the world’s leading law firms and corporations. We bring academic rigor, objectivity, and real-world industry experience to issues arising from competition, regulation, public policy, strategy, finance, and litigation.

NERA’s clients value our ability to apply and communicate state-of-the-art approaches clearly and convincingly, our commitment to deliver unbiased findings, and our reputation for quality and independence. Our clients rely on the integrity and skills of our unparalleled team of economists and other experts backed by the resources and reliability of one of the world’s largest economic consultancies. Continuing our legacy as the first international economic consultancy, NERA serves clients from major cities across North America, Europe, and Asia Pacific.