Guidelines of Good Practice on the Regulatory Decision-Making Process
Introduction
High-quality regulation depends on structured, transparent, and evidence-based decision-making. As energy systems become more complex and the energy transition accelerates, National Regulatory Authorities (NRAs) face increasing pressure to take decisions that are technically robust, proportionate, and legitimate.
To support this, CEER has published the Guidelines of Good Practice on the Regulatory Decision-Making Process (RDM), providing a practical framework to strengthen regulatory decision-making through the consistent application of Regulatory Impact Assessment (RIA) principles adapted to the realities of independent regulators.
Context and purpose
Developed under the CEER 2022-2025 Strategy, these Guidelines aim to support NRAs in implementing structured and proportionate RIA approaches, without creating unnecessary administrative burdens. They recognise the specific role of independent regulators, their limited resources, and their need to balance independence with accountability.
The Guidelines define core principles, including proportionality, complementarity with central government RIAs, internal quality assurance, capacity building, and structured stakeholder engagement, and translate them into a practical, six-stage regulatory decision-making methodology.
Key elements
The Guidelines highlight that good regulatory decisions should be:
- Proportionate, with the depth of analysis aligned to the expected impact of the decision.
- Evidence-based, grounded in data, analysis, and clearly defined problems.
- Transparent, with clear documentation of reasoning and trade-offs.
- Inclusive, integrating stakeholder engagement throughout the process.
- Accountable, supported by internal quality assurance and learning mechanisms.
To operationalise these principles, the Guidelines set out a six-stage methodology:
- Screening
- Problem definition
- Counterfactual and option definition
- Appraisal
- Delivery and feasibility
- Decision proposal
Expected benefits
By applying these Guidelines, NRAs can enhance the quality, consistency, and legitimacy of their regulatory decisions, strengthen stakeholder trust, and reinforce consumer confidence in European energy regulation, while preserving regulatory independence.
