Fundamental flaws in the current cost regulatory capital value method of utility pricing
Armstrong, Jo (2007) Fundamental flaws in the current cost regulatory capital value method of utility pricing. Quarterly Economic Commentary, 31 (4). pp. 38-40. ISSN 0306-7866
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Abstract
Jim Cuthbert and Margaret Cuthbert’s most recent analysis of the UK’s utility businesses (see QEC Vol 31 No 3) seeks to challenge the fundamental price setting methodology adopted by utility regulators. The basis of the challenge arises from an estimate of the size of the apparent super normal profits being made by utility companies. From this they conclude that the resultant equity return is too high and so leaves customers paying prices that are too high for the services provided1.
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Item type: Article ID code: 46902 Dates: DateEventJuly 2007PublishedSubjects: Social Sciences > Economic Theory Department: Strathclyde Business School > Economics
Strathclyde Business School > Fraser of Allander InstituteDepositing user: Pure Administrator Date deposited: 26 Feb 2014 11:25 Last modified: 31 Oct 2024 01:37 Related URLs: URI: https://strathprints.strath.ac.uk/id/eprint/46902
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