Regulation of electricity distribution for the future: prosumers and demand uncertainty

The proposed project contributes with knowledge on how to improve design regulation of electricity distribution, and how to ensure an efficient transition of electricity markets. The proposed project makes three important contributions to the previous knowledge of electricity distribution by answering the following questions:

1. Is current regulation of electricity distribution in Sweden working as supposed? Empirical observations reveal that prices vary substantially across firms, and few firms use all of their allowed revenue cap. By understanding and explaining these observations, important lessons about the efficiency of the current regulation can be learned.

2. What is the pricing behavior of regulated electricity distribution firms when demand is uncertain, and what role does an increasing share of household-level generation play?

3. How can regulation of electricity distribution be improved to become more efficient and to accommodate the ongoing transition of electricity market