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Electricity Distribution Investments: No Country for Old Rules? A Critical Overview of UK and Italian Regulations

The increase in distributed generation and the increasingly pro-active role of mass consumers demand “smart” distribution networks. To this aim, regulation too must innovate, in order to promote innovative and additional infrastructural investments.This paper develops, first, a methodological framework addressing the relevant drivers for the regulation of distribution network investments. In the light of this framework, we then perform a critical overview of the British and Italian regulatory approach to distribution network investments. Finally, we discuss some policy insights for the Italian regulator.