Distribution network operator DEDDIE’s new regulatory framework, featuring incentives for an achievement of goals designed to benefit the energy market and consumers, will be forwarded for consultation within the next few days by RAE, the Regulatory Authority for Energy.
The framework’s endorsement is seen as a prelude to the finalization of the operator’s new business plan, envisioning a major increase in investments and the recruitment of some 1,000 employees.
DEDDIE’s existing regulatory framework is designed to cover the operator’s costs through a cost-plus system, whereas the new proposal, a performance-based system, features incentives for improved performance.
The new framework will aim to create more favorable investment conditions, provide incentives promoting project upgrades and innovation for significant improvements to services, distribution network reliability and electricity quality, as well as a reduction of consumer costs.
Once endorsed, the framework will be valid for four years and also determine how the operator’s revenues will be calculated for a further four years.