Led by MEDREG’s Institutional Working Group and adopted during the Association’s last General Assembly in November 2017, the Mediterranean Energy Regulatory Outlook is now available.
The report shows that most Mediterranean regulators are independent and empowered entities working to support the opening of the energy markets and mandated to define tariffs, issue binding decisions and sanction sector participants.
Based on data collected from 20 Mediterranean energy regulatory authorities and ministries, the Energy Regulatory Outlook presents the status of energy regulation in the Mediterranean Basin and provides a complete overview of how the national energy sectors are ruled, ranging from independent entities to governmental bodies.
The analysis shows that all regulators set or approve rules regarding the management and allocation of interconnection capacity and that they are all responsible for customer protection. However, the report indicates that in some countries the role and competences of the regulator could benefit from clarification and improvement in terms of tariff definition, dispute settlement between industry and customers and the protection of vulnerable consumers.
This snapshot of Mediterranean energy regulation points out that overall, Mediterranean national regulatory authorities have comparable and satisfactory levels of independence, both functional and financial, which guarantee regulatory stability and neutrality and avoid situations in which the decisions of the regulator are constantly modified or subject to undue external influence.
Almost every regulator is charged with supporting the full opening of the electricity and, where possible, gas markets, cooperating with competition and anti-trust authorities. With the exception of Israel, Malta and Turkey, there are national timetables for the full opening of the electricity and gas markets in all Mediterranean countries. The outlook also highlights that most regulators are responsible for monitoring operators’ performance and have the power to sanction market entities, although the extent of this power differs widely.
Finally, the report notes satisfactory levels of transparency and accountability across the large majority of regulators, through the publication of annual reports and the regular use of public consultations.
This assessment of the current situation of each MEDREG member will enable identification of areas for improvement and will provide a basis for MEDREG’s forthcoming support activities for individual members during 2018 and 2019, thus contributing to the development of more advanced and solid governance models of energy regulation.