The Italian Authority for Electricity and Gas – September 200310
Role of regulation in retail supply competition
Allowing competitive supplier access to the wires of the local distribution companies, and thereby allowing all customers a choice of supplier, is one of the more innovative aspects of the liberalisation process.
This should provide more effective protection for customers and more efficient and innovative market than regulation of monopoly distribution companies.
in a competitive market it is no longer necessary or desirable to ensure that price equalled costs actually incurred;
In general, it is not necessary to remove all the risk and margin from the incumbent supplier.
There have been many provisions of such an opening around the world and, somewhere, there have been some backward steps however.
The extent of achievement of the benefits obtained by the action undertaken by government and/or regulator in retail supply competition field should be disputed