New Technologies Require Regulatory Vigilance and Balance

摘要

For both an industry and the economy, technological change is vital for growth and long-term prosper-ity. It enables society to enjoy new products and improved quality of existing products in addition to higher efficiency of production processes. Economists generally agree that technological change is the primary factor for economic growth. In the public utility sector, technological change has the special benefit of advancing policy objectives, namely, safety, reliability, energy security, affordable energy services and a cleaner environment. Technological change can therefore improve the long-term performance of public utilities, which after all is the prime objective of regulation. It is driving todays dialogue on utility business models, the regulatory paradigm and ratemaking, market developments and public policy.1 In revamping their business model, for example, utilities could embrace, accommodate or invest in new technologies to better their customers.