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Role of regulators and regulation in a (typical) restructured electricity industry - page 3 / 21

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The Italian Authority for Electricity and Gas – September 20033

Electricity industry reform and regulation/2

The adoption of a particular institutional framework is generally linked to the regulatory model that has being implemented:

there is less regulatory involvement in countries with a negotiated approach to access and pricing;

regulatory involvement tend to be stronger in countries in which unbundling policies are heavily emphasised.

The co-existence of several regulatory institutions with authority over the electricity sector raises a number of issues that should be addressed:

the autonomy and independence of each institution;

the allocation of responsibilities (some overlapping) to each institution;

the creation of co-ordination among institutions;

the governance and management of each institution;

the impact of co-ordination and management of each institution on the electricity sector costs and evaluation of such costs.

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