Dominic is an economist with a Masters from the London School of Economics and a Bachelors from Trinity College Dublin. Dominic has worked for ten years in the British civil service economist fast-stream, including in the Department of Energy & Climate Change, the energy regulator Ofgem, and the (renamed) Competition & Markets Authority. Prior to that Dominic worked in the international NGO Transparency International. Since moving to Reykjavik a year ago, Dominic has worked on a temporary contract at Orkuveita Reykjavik. Dominic speaks today in his capacity as a student of University of Iceland on his thesis topic.

ABSTRACT:

The regulatory framework for Combined Heat and Power – addressing risks and realising benefits

About the lecture: Costs of Combined Heat and Power (CHP) plant include those that are uniquely attributable to electricity production, those unique to heat production, and those that are common to production in both energy vectors. Where heat is a regulated monopoly and electricity a competitive market, such as in Iceland, policy-makers are concerned that without intervention, CHP owners may act on an incentive and ability to recover these common costs as much as possible through heat tariffs, to cross-subsidise their electricity operations and thereby enhance their profitability. In the absence of constraints, this risks distorting competition in the electricity market, potentially undermining electricity system efficiency, as well as prompting excessive heat prices. The Icelandic Government and NEA Orkustofnun have helpfully introduced laws and guidelines to address this risk. Dominic presents findings from his assessment of the issue as well as recommendations for light-touch reform in Iceland. His work has wider applicability for authorities and companies in other jurisdictions.