Electricity Decoupling in the UK

The regulation of the UK electricity distribution industry operates under a system of ex-ante price controls that are, by definition, based on forecasts of expected costs and required revenue. The gas and electricity networks are regulated under an RPI-X framework. This is an incentive-based regulatory framework. Revenue allowances are fixed in advance for a fixed period (typically five years)....

Natural Gas and Electricity Decoupling in the U.S.

As of late 2009, numerous U.S. states have experimented with and fully implemented decoupling. Generally speaking, the natural gas industry is more advanced than the electricity industry, consistent with its longer history of deregulation. The following discussion highlights some of the differences and similarities across these industries and among the variety of regulatory environments with...