Cost Benchmark Methodology for Gas Transmission System Operators (TSOs)

As the process of liberalisation of the European energy markets progresses, there is a need for promoting efficient operation and regulation of the natural monopoly transmission networks. The Council of European Energy Regulators (CEER) has commissioned a study of the feasibility of comparative efficiency analysis and benchmarking as a tool for regulation of the European natural gas transmission system operators (TSOs).

The aim of the study is to help national energy regulators to gain experience with and develop a methodology for the use of benchmarking in assessing network tariffs. The benchmarking methodology can be used to identify performance and tariff differences for the purpose of further examination. The small number of gas TSO in most European countries requires that a benchmarking of the companies should have an international approach. The study will assess the availability of suitable international data and will advice on suitable approach, techniques, and models for comparative efficiency analysis of the gas TSOS.

The work on the project was completed in June 2006.

The study was conducted by Michael Pollitt, Tooraj Jamasb and Thomas Triebs.

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