[en] Until 1997, Norwegian electric utilities determined the transfer tariffs so as to fully cover their costs. Since 1993, the Norwegian Water Resources and Energy Administration (NVE) has determined an annual maximum yield rate that in principle could only be attained through efficient operation of the grid. According to this report, it has been hard to follow up this principle and network owners have been able to charge maximum yield rates. To remedy some inherent weaknesses of a regulation based on cost coverage, NVE has changed the rules to be based on the income framework determined for each network owner individually. The actual costs no longer determine the tariffs. The network owners must now give preference to measures and costs within the determined income framework. Cost reductions and efficiency improvements are rewarded with increased yield while increased costs give reduced yield. For a rational network owner this provides an incentive for increased efficiency. NVE will change the income framework each year in the five-year period 1997-2001 in relation to inflation, development of energy delivered and the requirements on improved efficiency. This system is expected to contribute to a rational network development which will better attend to the uppermost interests of society