Abstract

Northrhine-Westfaha (NRW) is the largest state in Germany with approximately one fourth of the total population. About 100 vertical integrated utilites are controlled by the electricity price authority (Strompreisaufsicht) within the Ministry of Economics and Technology. Among those the RWB Energie is the largest German utility with one quarter of the total German generation capacities. Since 1991 NRW has adopted several key elements of an incentive regulation which intend to help utilities on their way to fully integrated planningÉprocesses and to a sustainable energy path. Especially the municipalities have responded to these offers with all kinds of activities, including rebate programs for appliances and lighting devices. The RWE Energie was the fust utility that conducted a detailed evaluation study on behalf of the electricity price authority to gather experience for improving LCP/DSM programs in the future.

The paper focuses on the traditional practice of the German electricity price regulation system, the experience with key factors of an incentive regulation in NRW and additional elements of a Öcarrot and stick regulationË for the future to speed up the LCP process both in NRW and in Germany.

Paper

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Panels of

Panel 1: Policy and Programmes - Who can deliver DSM?

Panel 2: Programme Evaluation

Panel 4: Human Dimensions

Panel 3: Market Transformation: Innovation, Development and Dissemination

Panel 6: Transportation, Urban Planning and Land Use

Panel 5: Energy Policy for a Sustainable Environment