The energy transition requires a stable regulatory environment that promotes innovation and investments. The role of energy regulators in retail market monitoring is more important than ever, and the need to strike a balance between investors, state intervention and consumer protection is on the rise. Ensuring good regulatory practices is an important task and should be maintained by a comprehensive strategy. Some elements consist of avoiding external influences from stakeholders. This could be achieved by the regulator’s independence, which should be covered by protecting it from the influence of national and regional governments and industries. In addition, the legislative framework is essential to set the environment in which the regulator is supposed to work. A regulator's duties and powers should help to identify a minimum set of competences defining its specific responsibilities to promote competition and consumer empowerment.
Effective organization of the regulator requires clear decision-making process and actions and an internal operational structure with distinct roles and responsibilities. The regulator should be able to enforce the regulations it passes since enforcement involves ensuring compliance with the rules by market participants and regulators. Lastly, transparency and accountability are cornerstones in the work of the regulators and should be maintained at all times.
1) How can countries enhance the independence of their regulators?
2) And what additional benefits would these actions guarantee if they are implemented properly?