Changes of Business Models in Electricity Distribution

Abstract

Electricity distribution is, in most countries, monopoly business and regulated by local authority.  Entry of international companies and regulatory demands for higher cost efficiency and better distribution quality demand continuous development in business models of electricity companies. Outsourcing and service providing are possible solutions for improving the cost efficiency of energy companies. The aim of this study is to give both theoretical and practical aspects on the development of electricity utilities' business models in Scandinavia.