A warm welcome to Bosnia and Herzegovina who joins CEER as an Observer. Before bidding farewell to 2016, we published 3 reports: a review of current and future data management models; another on NRA cooperation (which shows how regulatory cooperation enhances regional and EU market integration); and a report on safeguarding the independence of energy NRAs (see our feature article below). Our current public consultation on (price) comparison tools is open until 16 January. We offer a full suite of training courses in 2017.
The big event in January(23-24) is the ACER-CEER conference “Towards a future-proofed EU Energy Market Design”. It presents an opportunity to explore the challenges and implications of the European Commission’s clean energy legislative package. Register now for this event (as seats are filling up fast). As we look forward to the New Year, we wish all our readers a prosperous and peaceful 2017.
Safeguarding the independence of Europe's energy regulators
CEER has published a report “safeguarding the independence of regulators” which looks at the independence of Europe’s energy NRAs in practice. Independent regulatory oversight means that the energy NRAs must be empowered to act independently of market and political interests.
Why does regulatory independence matters? Regulatory independence is not an end in itself but a means toward ensuring effective and efficient public service (see recent OECD report “Being an Independent Regulator”).
Explaining that confidence in the regulator’s independence will provide confidence in the market, CEER President, Lord Mogg explains “The independence of national regulators is of profound importance for market confidence. A stable, predictable and coherent regulatory framework is essential for investments and to protect consumers in the sector.” (see CEER Press Release)
What’s in the CEER report on the independence of regulators? The CEER report examines the independence of Europe’s energy NRAs, as well as their powers, resources, accountability and transparency. The CEER report includes recommendations on how to safeguard the independence of regulators.
Shortcomings in the political independence of Europe’s energy regulators EU energy legislation (3rd Package) provides that energy NRAs should be independent of both industry and government. CEER finds that EU energy legislation has not been fully implemented in some countries in terms of the independence of energy regulators. - In 5 of the 29 countries surveyed, the NRA can be given instructions by the government on regulatory decisions. - In 11 countries, the NRA requires governmental approval of the budget or the government can cap the regulatory fee. - Some NRAs are subject to general head count caps. In 3 countries, governments were heavily involved in hiring of NRA staff and setting wages.
Key recommendations CEER recommends strengthening regulators’ independence in a number of ways including through clarity in the law on what independence means, autonomy at all stages of the budgeting process, and no restrictions on the budget’s use.
CEER will, in the coming months, scrutinise the European Commission's "Clean Energy for All Europeans" legislative proposals with a view to ensuring that NRA independence is safeguarded and, where necessary, strengthened.
CEER Reports: - Safeguarding the independence of regulators - CEER Review of Current and Future Data Management Models - CEER Status Review on NRAs' Cooperation in Practice
Public Consultations: - CEER GGP on Comparison Tools in the new Energy Market Design (Deadline: 16 Jan. 2017)
Press Releases: - The truth about the independence of Europe’s energy regulatory authorities - CEER welcomes Bosnia and Herzegovina - Europe’s Energy Regulators welcome the Commission’s Clean Energy for All Europeans proposals
