Navigating electricity network congestion: An examination of a principle-based regulatory theory and strategy

The digitisation of the energy sector is moving fast. At the same time, the transition to renewable energy brings challenges. However, legislative developments either move slowly or are introduced in a piecemeal manner. This situation is sometimes perceived as a regulatory mismatch and is problematic from the perspective of achieving climate and sustainability goals. The limited capacity of energy grids to transport electricity is a prime example of why we need a regulatory system that takes into account the fast-paced development of technology while providing a consistent pathway for the future. In this contribution, we build on the scholarship that identifies energy principles. We analyse the extent to which principles play a role in new energy regulation and in Dutch mitigatory policies. As a theoretical framework for explaining the crucial role of principles in regulation, we use Fleming's normative proposal of the trias of energy regulation.