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Date: May 2022 | Client: CEER | Sector: Energy | Expertise: Regulation & competition

CEPA advises on tools to evolve energy regulation

The Council of European Energy Regulators has today published CEPA’s recommendations for how energy regulators can best deploy ‘dynamic regulation’ tools – exemptions from the standard regulations that are limited in time and scope, and which aim to foster learnings for future regulatory reforms. Dynamic regulation is part of a growing set of policy experiments that regulators are relying on to balance (i) the need for regulatory change due to sustainability aims with (ii) the need for regulatory stability to support long-term investments.

Based on case studies from eight countries CEPA drew out the different features of dynamic regulation that can be adapted to fit local circumstances and aims, as well as identifying seven common features that all dynamic regulation initiatives must have to be successful:

Dynamic regulation diagram

The most common form of dynamic regulation is a ‘regulatory sandbox’ – since we concluded our work for CEER, new regulatory sandboxes were launched in the Australian and Swedish energy sectors. If you are interested in CEPA’s help to develop, implement and/or evaluate a regulatory sandbox or any other dynamic regulation initiative, please get in contact.

To find out more, please contact our experts listed below.