Incentive based regulation of the Finnish DSOS Finnish regulator

Incentives are an important part of a well functioning regulation scheme. When the Finnish Energy Market Authority developed the regulation model for the DSOs for the regulatory period 2008 – 2010, specific incentives were included in the model already from the beginning of the planning process. This paper describes what kind of incentives related to cost of capital, operational costs and outages the Finnish electricity network regulation model provides for the DSOs.