Development of Electricity Networks: Essays on Incentive Regulation and the New Role of Consumers

The electricity sector is undergoing a remarkable change, supporting the overall transition required to meet policy objectives of lower carbon emissions as well as a safe and secure supply of electricity in a cost-effective manner for consumers. Electricity networks are part of the infrastructure vital to a functioning modern economy. This thesis considers specific elements of ongoing developments related to electricity networks, namely the changes in the economic regulation of networks and the new role for consumer. Achieving environmental and climate change policy targets is reliant on electricity networks adapting to changes and embracing an increased role in the electricity supply chain. The need for sensitivity to social justice and the preferences of electricity end-consumers is relatively new to network owners but is becoming increasingly important. Four main chapters, employing both theoretical and empirical economic methods, quantitative and qualitative, explore and advance aspects of incentive regulation and, particularly, the role of consumers.