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@article{ART003357583},
author={Yeonjei Jung and Yunji Her},
title={Regulatory Design and Operational Performance of the UK RIIO Model: Implications for Reforming Electricity Network Regulation in Korea},
journal={Journal of Regulation Studies},
issn={1738-7132},
year={2026},
volume={35},
number={1},
pages={3-37}

TY - JOUR
AU - Yeonjei Jung
AU - Yunji Her
TI - Regulatory Design and Operational Performance of the UK RIIO Model: Implications for Reforming Electricity Network Regulation in Korea
JO - Journal of Regulation Studies
PY - 2026
VL - 35
IS - 1
PB - 한국규제학회
SP - 3
EP - 37
SN - 1738-7132
AB - The structural transformation of the power industry—decarbonization, decentralization, and electrification—demands a paradigm shift in electricity network regulation from a traditional cost-recovery model to a Performance-Based Regulation (PBR) framework focused on value creation. This study analyzes the UK's RIIO (Revenue = Incentives + Innovation + Outputs) model from the perspective of regulatory design to derive policy implications for reforming Korea's power grid regulation. To this end, this study systematically examines the RIIO model through four analytical frameworks: (1) long-term investment incentives, (2) a total expenditure (TOTEX) approach, (3) output-reward linkages (ODI), and (4) innovation stimuli. The analysis reveals that RIIO has achieved significant outcomes in institutionalizing energy transition by shifting the regulatory focus from inputs to outputs, thereby mitigating CAPEX bias and fostering innovation. However, limitations identified during its operation—such as excess profits and information asymmetry—demonstrate that the success of PBR depends not merely on adoption but on the precision of parameter calibration and the analytical capacity of the regulator. In conclusion, this study suggests that Korea's electricity network regulation must evolve beyond simple cost compensation into a dynamic framework. This transition requires aligning incentive structures with policy objectives and continuously refining the system based on operational feedback.
KW - Electricity Network Regulation;Performance-Based Regulation;RIIO;TOTEX;Regulatory Design;Energy Transition
DO -
UR -
ER -

Yeonjei Jung and Yunji Her. (2026). Regulatory Design and Operational Performance of the UK RIIO Model: Implications for Reforming Electricity Network Regulation in Korea. Journal of Regulation Studies, 35(1), 3-37.

Yeonjei Jung and Yunji Her. 2026, "Regulatory Design and Operational Performance of the UK RIIO Model: Implications for Reforming Electricity Network Regulation in Korea", Journal of Regulation Studies, vol.35, no.1 pp.3-37.

Yeonjei Jung, Yunji Her "Regulatory Design and Operational Performance of the UK RIIO Model: Implications for Reforming Electricity Network Regulation in Korea" Journal of Regulation Studies 35.1 pp.3-37 (2026) : 3.

Yeonjei Jung, Yunji Her. Regulatory Design and Operational Performance of the UK RIIO Model: Implications for Reforming Electricity Network Regulation in Korea. 2026; 35(1), 3-37.

Yeonjei Jung and Yunji Her. "Regulatory Design and Operational Performance of the UK RIIO Model: Implications for Reforming Electricity Network Regulation in Korea" Journal of Regulation Studies 35, no.1 (2026) : 3-37.

Yeonjei Jung; Yunji Her. Regulatory Design and Operational Performance of the UK RIIO Model: Implications for Reforming Electricity Network Regulation in Korea. Journal of Regulation Studies, 35(1), 3-37.

Yeonjei Jung; Yunji Her. Regulatory Design and Operational Performance of the UK RIIO Model: Implications for Reforming Electricity Network Regulation in Korea. Journal of Regulation Studies. 2026; 35(1) 3-37.

Yeonjei Jung, Yunji Her. Regulatory Design and Operational Performance of the UK RIIO Model: Implications for Reforming Electricity Network Regulation in Korea. 2026; 35(1), 3-37.

Yeonjei Jung and Yunji Her. "Regulatory Design and Operational Performance of the UK RIIO Model: Implications for Reforming Electricity Network Regulation in Korea" Journal of Regulation Studies 35, no.1 (2026) : 3-37.