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Energy Sector Monitoring: towards a Regional Approach

Energy Sector Monitoring: towards a Regional Approach. Ana Otilia Nuțu Expert Forum (EFOR) June 6, 2012. Contents. Context Romania ’ s energy Why the project The first project ( “ Citizens for energy ” ) Outcomes Lessons learned Current project ( “ Policy and regulation ” )

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Energy Sector Monitoring: towards a Regional Approach

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  1. Energy Sector Monitoring: towards a Regional Approach Ana Otilia Nuțu Expert Forum (EFOR) June 6, 2012

  2. Contents • Context • Romania’s energy • Why the project • The first project (“Citizens for energy”) • Outcomes • Lessons learned • Current project (“Policy and regulation”) • Sustainability efforts • Expanding in the region

  3. Romania’s energy, why the project • Energy sector: very fast reforms (1998-2006) then quick reversal (after accession 2007) – likely also in the region • Deregulation, liberalization, competition, modern legislation and regulatory framework • Watchdog: chose initially one institution (regulator ANRE), to monitor evolution in time, benchmark wit EU – follows the evolution of sector • Major issues: governance, corruption Ro vs EU: reforms in 2007-2009 (gas – left, electricity – right). Ro – the only country that reverses previous reforms

  4. “Citizens for energy” (1) • Used a very clear methodology (WB, Inogate, adapted to Ro) • Followed it consistently, 2 reports, peer review (Ro, foreign) • Compared regulator with itself (scorecard) and key EU regulators • 2 reports, 2 conferences, excellent attendance; reports used by EU, WB, IMF

  5. “Citizens for energy” (1) • External monitoring, no collaboration with the monitored entity • Met ANRE, discussed, but no efforts from ANRE to change status quo – but unrealistic to expect many public sector entities to be reformist, particularly after EU accession • Initial outcomes: NGO self development; partner for policy discussion, excellent contacts with stakeholders (except ANRE). Broader outcomes: some improvements to the law & practice, need constant pressure • Weaknesses: can cause change only to the extent there is public pressure; stakeholders have little courage to support same ideas publicly, despite discussions (reliance on IMF, no courage to tell the truth to shareholders abroad)

  6. “Policy and regulation” (2) Designed a more flexible structure (continue monitoring of ANRE, share experiences with NGOs in the region, general monitoring of sector, couple with IFI efforts) – “whatever works, is good” Quick reaction to developments in the sector (media connection) Coupling and co-financing with regional projects (Romania, Serbia, Moldova, Croatia, several projects to monitors broader “quantitative indicators of corruption”) Key challenge – to mobilize “real” stakeholders (companies, consumers) to demand better governance

  7. Moving forward in the Region Seeking contacts for similar monitoring exercises in the region Problems are similar, EU energy sector rules apply in new members and neighbors, similar institutions; regional comparisons possible Peer reviewers in our Panel of experts – expertise in the region Coupling with other regional projects for info and contacts Under preparation – guideline for watchdogs in the region (June 15) – to be disseminated, also on www.expertforum.ro Partnership: Regional projects have better prospects for financing. Coupling for co-financing, consistent comparisons, sharing of experiences across countries for sustainability.

  8. Thank you! otilia.nutu@expertforum.ro www.expertforum.ro +40 723 643 471

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