Efficiency and Cost in Distribution Companies

In the eight-year period following the 1991 regulatory reform, increased attention has been given to cost levels in transmission networks owned and operated by Norwegian utilities. As a consequence of the new regulatory principles, utilities must now make a clear administrative and operative distinction between network activities and those activities which are exposed to competition, by keeping separate accounts for their various activities. Utilities must also specify transportation costs when billing their customers. This means that information about the cost level in the networks is today available to the public.