The law for the emerging active role of electricity consumers

Abstract

This thesis investigates the role of law in shaping the liberalised electricity system for a more active role of consumers. The research studies three countries, New Zealand, Colombia and the Netherlands, to analyse how different electricity systems and legal frameworks are responding to the new technologies that enable active consumers. In order to provide a better understanding of the current law, this thesis classifies the multiple regulatory responses in terms of conventional regulation, decentred regulation and market-driven approach. In addition, the research applies legal theories regarding law and innovation such as the existence of regulatory disconnection, risks of disruptive technologies and the role of law in stimulating technological change. Law and regulation have the role of creating a level playing field for active consumers to participate and compete in the market together with traditional actors. In this sense, the role of consumers, distribution companies, markets and retailers should be reconsidered and therefore, the need to update the regulation and avoid regulatory disconnection. The main features that such legislation should include are different regulatory treatments depending on the size of the project and fair remuneration for the supply of energy and services provided by prosumers. The distribution tariffs or their methodologies should not deter the participation of prosumers , also it is necessary the existence of simplified licensing and procedures for small prosumers. It is also vital to undertake pilot projects and legal experimentation to help underpin future regulation.