The smart grid offers a world of possibilities that will be subject to government policy, regulations and legislation. Regulatory bodies will need to implement government policy, define priorities and work with stakeholders to chart a course that will result in the best value for all stakeholders.

The implementation of the smart grid will require new rate structures to be developed and approved by regulatory bodies. Key performance indicators, a leading indicator of customer satisfaction and operational excellence under Performance Based Regulation regimes, will need to be modified.

In the smart grid era, rate regulation is only one facet of stakeholder operations that will appear before regulatory bodies. Many jurisdiction will require local distribution companies to develop smart grid plans which will be subject to approval by regulatory tribunals. As the smart grid develops, all stakeholders must ensure that they are complying with existing and future Codes and regulations that have been developed specifically for the smart grid.