Revenue Cap Regulation

AAA

DEFINITION of 'Revenue Cap Regulation'

A form of economic regulation generally applied to utility companies. Revenue cap regulation seeks to limit the amount of total revenue received by a company operating which holds monopoly status in the industry. Like price cap regulation, revenue cap regulation is determined according to inflation, the Consumer Price Index (CPI) and the efficiency savings factor.

INVESTOPEDIA EXPLAINS 'Revenue Cap Regulation'

Revenue cap regulation stands in contrast to price cap regulation, which seeks to control the prices set by produces. It also differs from rate of return regulation, which seeks to control the rate of return earned by companies. Revenue cap regulation is designed to incentify regulated companies to increase their efficiency.

RELATED TERMS
  1. Price Cap Regulation

    A form of economic regulation generally specific to the utility ...
  2. Operating Revenue

    Income derived from sources related to a company's everyday business ...
  3. Revenue

    The amount of money that a company actually receives during a ...
  4. Ancillary Revenue

    Revenue generated from goods or services that differ from or ...
  5. Recurring Revenue

    The portion of a company's revenue that is highly likely to continue ...
  6. Revenue Deficit

    When the net amount received (revenues less expenditures) falls ...
Related Articles
  1. Personal Finance

    Top 8 Ways Companies Cook The Books

  2. The cash conversion cycle (CCC) is one of several measures of management effectiveness.
    Investing Basics

    Understanding The Cash Conversion Cycle

  3. Forex Education

    Understanding The Income Statement

  4. Retirement

    The Essentials Of Corporate Cash Flow ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center