The Danish revenue regulation can be improved in three dimensions. Firstly, the regulation should adapt to a forward oriented approach – especially with regard to investments – as well as implement a WACC element and high powered incentives. Secondly, environmental, climate and customer needs must be integrated with the economic regulation. Thirdly, there is a need to increase the efficiency of climate adaptation.
In this study, we analyse the investment incentives in the current regulatory setup, the implications of implementing a WACC and high-powered incentives as well as making recommendations for a reform.
For further information, please contact Malte Lisberg Buhr