ERRA Issue Paper: REGULATORY INDEPENDENCE
KEMA has been commissioned by ERRA to draft and complete an issue paper on Regulatory Independence. This paper reflects the predominant features of independence of ERRA members’ respective regulatory bodies. It also identifies best practices based on international experience and provides recommendations for the ERRA members to operate and function independently.
For this assignment KEMA prepared and sent out a questionnaire to all ERRA members covering the following main areas of independency: political, legal, sociological and financial independence and transparency.
Independent regulators are important because they can limit political interference in business decisions which minimizes regulatory risks. This regulatory role is particularly important given the nature of regulation in the energy sector. The gas, electricity and heat sectors are capital intensive and characterized by long term asset life. These industries are essential for the overall economic development of the country and require a predictable and credible regulatory regime.
Wai Sum Cheng; Petrov Konstantin
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