Facoltà di scienze economiche

## Yardstick regulation of electricity distribution utilities based on the estimation of an average cost function

### Filippini, Massimo ; Wild, Jörg

In this paper we estimate an average-cost function for a panel of 45 Swiss electricity distribution utilities as a basis for yardstick regulation of the distribution-network access prices. Unlike the existing literature, we separate the electricity sales function of utilities from the network operation function. Several exogenous variables measuring the heterogeneity of the service areas were... More