Most electricity local distribution undertakings run on a cost plus model. If their costs increase, they are permitted to have higher profits as regulators set

Most electricity local distribution undertakings run on a cost plus model. If their costs increase, they are permitted to have higher profits as regulators set rates such that profits are a percentage of costs. There is no incentive for grid operators to become more efficient or to avoid needless waste. This works out great for grid operators, but means the general public can only ever expect higher prices for the same service.