Network tariffs in deregulated regimes

In the point of view of tariffs, deregulation causes dramatic changes both for consumers, utilities and authorities. The tariff has to show costs for transport and supply in an explicit way. Regulatory framework included principles for monopoly control, gives the terms for how utilities as network owners and suppliers must do their work with tariffs. Guidelines for how to prepare network tariffs are the general basis for all network tariffs. It is the local network owner that is responsible to present network tariffs based on the regulators guidelines. Guidelines do not represent any obstacles for the network owner's strategy and operation regarding tariffs. The reality is that very few utilities in Norway so far have taken into account other objectives for their network tariffs than obtaining cost absorption. This paper presents a principal discussion about network tariffs. Results from Trondheim Energy Board's tariff project are presented and given an analysis related to regulatory framework and monopoly control principles. Consequences related to strategies for how to become an effective network owner as a part of a municipally owned integrated utility is discussed. A basic question in this discussion is how to fit the organization to a reality with both the role as a monopoly controlled network owner and as a supplier in competitive surroundings.