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RWE and the Proposal for a German Electricity Regulator
In April 2001, Dietmar Kuhnt, CEO of the German energy giant RWE, had to make a decision that would affect his company's future. Profits in the electricity sector depended heavily on regulatory rules that influenced industry structure and pricing. RWE had emerged through deregulation as one of the largest electricity companies in Germany and a multiutility. Now there was a proposal on the table to replace the largely lighthanded regulatory model based on negotiation between private parties with a more traditional regulatory model of an industry-specific regulator. What type of regulatory regime would be best suited to RWE's ambitious strategy to grow and prosper?