An analysis of some aspects of regulatory risk and the required rate of return for public utilities

1989 ◽  
Vol 1 (3) ◽  
pp. 241-257 ◽  
Author(s):  
Chang Mo Ahn ◽  
Howard E. Thompson
Keyword(s):  
Public Utilities ◽  
Rate Of Return

The Cost of Capital -- Estimating the Rate of Return for Public Utilities

1986 ◽  
Vol 52 (3) ◽  
pp. 899
Author(s):  
Ronald P. Wilder ◽  
A. Lawrence Kolbe ◽  
James A. Read ◽  
George R. Hall
Keyword(s):  
Cost Of Capital ◽  
Public Utilities ◽  
Rate Of Return ◽  
The Cost

Rate of Return and the Value of Money in Public Utilities

1952 ◽  
Vol 28 (2) ◽  
pp. 91 ◽  
Author(s):  
Walter A. Morton
Keyword(s):  
Public Utilities ◽  
Rate Of Return ◽  
Value Of Money

Comparing Profitability in the Public Utilities, Defence and Pharmaceuticals1

1997 ◽  
Vol 17 (1) ◽  
pp. 81-105 ◽  
Author(s):  
Stephen Martin ◽  
Keith Hartley
Keyword(s):  
Public Utilities ◽  
Rate Of Return ◽  
Price Cap Regulation ◽  
Corporate Sector ◽  
Rates Of Return ◽  
Price Cap ◽  
The Public ◽  
Pharmaceutical Industries ◽  
The Government ◽  
The Uk

ABSTRACTThe United Kingdom's system of utility regulation – controlling prices rather than profits – is under increasing criticism. At the same time, the government continues to employ rate of return controls when purchasing from the defence and pharmaceutical industries. The existence of alternative regulatory regimes raises three questions. First, has price cap regulation enabled the UK utilities to earn excessive profits? Second, has profit regulation prevented excessive profitability in the defence and pharmaceutical industries? Third, how does profitability compare between price cap (utilities) and rate of return (defence/pharmaceuticals) regulation? Our results suggest that three of the four utilities studied have been able to earn rates of return that are considerably greater than in the corporate sector as a whole. Price caps have been far too lenient. In defence and pharmaceuticals there is less evidence of excessive profitability but these suppliers still earn 25 per cent more than comparable firms elsewhere.

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