InnoEnergy releases economic models to assess impact of electricity regulation

REPORTE ANTONIInnoEnergy, together with FUNSEAM and the Chair of Energy Sustainability at the University of Barcelona, has developed new econometric models for European energy regulators. These innovative models allow regulators to assess the potential economic impact of their choices on the retail price of electricity, income transfers between producers and consumers, and economic growth.

The research, which took more than a year to complete, sought to understand and quantify economic impacts from Europe’s electricity regulation. The resulting models examine the effect of network and renewable energy promotion costs on electricity retail prices, consumption and economic growth. They also assess the impact of the liberation of the electricity retail market and the uptake of renewable energy.

Diego Pavia, CEO of InnoEnergy, said: “Electricity regulation is complex at the best of times, and we found it surprising that the economic impact of these important regulatory decisions hadn’t been analysed sooner. These ground-breaking new models will enable regulators to better understand the power of their choices on energy costs and the uptake of renewable electricity.”

The economic models – applicable to any European country – have already been validated in Germany, the UK and Spain, all of which have varying energy regulatory systems.

Dr. Maria Teresa Costa, former President of the Spanish energy regulator CNE, and manager of the Chair of Energy Sustainability, and Dr Joan Batalla, former Commissioner of the CNE and General Director of Funseam, added: “This research is vital for securing a sustainable energy future. Our goal is to provide Europe’s electricity regulators with an in-depth, robust method of analysing different energy support choices to ensure the economic viability of the power system.”

To download a copy of the report and access the econometric models please visit:


Managed by Dr. Joan Batalla, former Director of the Spanish energy regulator (CNE), FUNSEAM is a non-profit institution that has established itself as a leading centre in the debate on energy and in the creation of informed opinion in society at large. The foundation serves as a forum for discussion and as a centre of academic analysis and research, undertaken primarily by the Chair of Energy Sustainability at the University of Barcelona.

About the Chair of Energy Sustainability

Managed by Dr. Maria Teresa Costa, former President of the Spanish energy regulator (CNE), the Chair of Energy Sustainability’s role is to promote the economic, environmental and social research of the production, supply and use of energy required to sustain development and social welfare. The Chair, affiliated to the IEB (Barcelona Institute of Economy), was created under an agreement between the University of Barcelona and FUNSEAM.