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Why is a price cap mechanism being proposed, when other jurisdictions chose revenue caps?

April 26, 2017cap caps chose jurisdictions mechanism price proposed revenue

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Why is a price cap mechanism being proposed, when other jurisdictions chose revenue caps?

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A price cap tends to simulate a competitive market better than a revenue cap, provide a better balance between risk and reward, and promote more efficient utilization of the existing infrastructure. Energy efficiency may be promoted through other mechanisms of the restructuring.