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Quantitative Evaluation of the Independence of the Bulgarian Energy Regulatory Agency – State Energy and Water Regulatory Commission
1. Quantitative Evaluation of the
Independence of the Bulgarian Energy
Regulatory Agency – State Energy and
Water Regulatory Commission
Atanas Georgiev
Assistant Professor & PhD Candidate
Faculty of Economics and Business Administration
Sofia University “St. Kliment Ohridski”
2. Research Methodology
Introduction
The current research performs a quantitative evaluation of
the formal independence of the Bulgarian State Energy
and Water Regulatory Commission (SEWRC).
The methodology used includes:
- An index for evaluation of formal independence created
and developed by Gilardi (2002, 2005, 2010)
- A review of the legislation related to the statute of the
Bulgarian SEWRC
- Comparative analysis
3. Sustainable Energy Sector Regulation
• According to researchers, the independence of energy
regulators is a source of institutional power, as it isolates
the regulatory board members from partisan and political
influence
• Regulatory independence guarantees sustainable
regulation in the energy sector and proper balance of
interests
• The proper balance of interests in the energy sector is a
prerequisite for new investments and sustainable
business practices in the energy sector
4. Issues Related to Sustainability of Energy
Sector Regulation
• Price-setting mechanisms and regulation
• Implementing sector policies (e.g. renewable energy)
• Quality-of-service regulation
• Setting market liberalization procedures
• Market monitoring
• Disputes resolution Sustainability
• etc.
EU’s
20-20-20
Energy Policy
(2009/29/EC)
Security Competitive
of Supply Market
5. Evaluation of the Formal Regulatory
Independence of the SEWRC
• First attempt to measure the formal independence of the
Bulgarian SEWRC
• Evaluation methodology by Gilardi (2002, 2005, 2010),
includes five main aspects evaluated from 0.00 (full
dependence) to 1.00 (full independence):
– Election and status of the Board Chairman
– Election and status of the Board Members
– Relations with the executive and legislative power
– Financial and organizational independence
– Regulatory competences
6. Formal Independence of the SEWRC
• Election and status of the Board Chairman – 0.59
• Election and status of the Board Members – 0.59
• Relations with the executive and legislative power – 0.92
• Financial and organizational independence – 0.38
• Regulatory competences – 1.00
------------------------------------------------------
• Average of the values – 0.70
7. Comparative Analysis and “De Facto”
Independence
• According to data for other
countries in Europe, the formal
regulatory independence for
energy sector regulators varies
from 0.45 to 0.75 for a set of
analyzed countries
• However, formal independence
is not considered high enough
by stakeholders in the
Bulgarian energy sector
• Additional evaluation of the “de
facto” independence is needed
Gilardi, 2003
(Maggetti, 2007)