Strategic behaviour under regulatory benchmarking

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What is the best practice for benchmark regulation of electricity distribution? Comparison of DEA, SFA and StoNED methods (2013, background): “This gives firms more room to ‘game’ the regulator by showing artificial improvement of efficiency (see e.g. Jamasb et al., 2003, 2004, for further discussion). setting.”
Electricity sector reform in developing countries: an econometric assessment of the effects of privatization, competition and regulation (2008, methodology): “Instrumental variables have been used in the literature to correct for this potential bias, however, as Jamasb et al. (2004) point out, the major challenge is identifying appropriate instrumental variables and collecting data on them.”
Incentive regulation of electricity distribution networks : Lessons of experience from Britain (2007, background): “…incentive regulation is to achieve these objectives 1 As such, the theory and empirical evidence on the merits of private ownership and privatization in the context of market-oriented infrastructure reforms can be characterized as inconclusive (Jamasb et al., 2004a; Mota, 2004; Zhang et al., 2002).”