Table 2.

Policies.

Tool	Policy	Objective
Technical standards	Establish mandatory standards with higher CAPEX allowances	Compensate investors over the long term through OPEX savings
Premiums	Encourage investments via a premium in the WACC	Set premiums at levels that are attractive to project developers
Rules for anticipatory investments	Establish rules relating to anticipatory investments	Help project developers to identify the best investment alternatives
Adjusted depreciation	Define rules on depreciation	Make the investment recovery period more attractive
Exemption from efficiency requirements	Exempt operators from efficiency requirements over a period	Support operators in making investments efficiency failing risks
Sliding scale	Outline targets for specific items such as cost reductions	Incentivize project developers to submit realistic investment forecasts
Advantageous debt/equity ratio	Fix a well-defined debt-equity ratio	Entitle companies to receive attractive rates of return
Stability arrangements	Various tools	Provide project developers with some guarantee of regulatory stability
Early recognition of costs	Allow for specific arrangements for CWIP	Provide favorable and stable information on asset investments that remain to be commissioned

Source: adapted from [9].