In April 2001, Dietmar Kuhnt, Director General of the German energy giant RWE, had to make a decision that will affect the future of their company. Profits in the electricity sector is highly dependent on the regulatory rules that affect the industry structure and pricing. RWE came through deregulation, as one of the largest energy companies in Germany and multiutility. Now there is a proposal on the table to replace the largely lighthanded regulatory model based on negotiations between individuals with more traditional regulatory model industry regulator. What type of control will be best suited for an ambitious strategy of RWE to grow and prosper? "Hide
by Alexander Dyck, Jose Gomez-Ibanez, Christopher Meyer Source: Harvard Business School 25 pages. Publication Date: March 25, 2002. Prod. #: 702053-PDF-ENG