European Energy Regulators: An Empirical Analysis of Legal Competences

29 Pages Posted: 20 Apr 2015 Last revised: 8 May 2015

See all articles by Thijs Jong

Thijs Jong

affiliation not provided to SSRN

Edwin Woerdman

University of Groningen - Faculty of Law

Date Written: April 19, 2015

Abstract

This paper examines empirically whether differences in legal competences of National Regulatory Authorities (NRAs) of European gas and electricity markets are rationally aligned to the corresponding countries’ divergent levels of 1) security, 2) competitiveness, and 3) carbon-neutrality of energy supply. Scores are derived (a) on the extent to which these energy supply characteristics are realized and (b) on how many competences NRAs have regarding these policy objectives. Although higher energy scores should reduce the need for regulatory intervention and thus legal competences, it appears that this does not hold for most policy objectives. In fact, gas and electricity market unbundling and/or liberalization imply higher degrees of regulatory intervention. Finally, the legal competences do not completely follow the 'optimal' competence arrangement for regulatory authorities; compared to a theoretical benchmark there are relatively more 'tough' than 'soft' competences, while the latter are less costly to exercise. These potential regulatory 'mismatches' could be corrected by adjusting the number and intrusiveness of the NRAs' legal powers.

Keywords: energy markets, National Regulatory Authorities, legal competences, multilevel analysis, security of supply, carbon-neutrality, competitiveness

JEL Classification: C23, H11, L43, L51, L94, L95, Q48

Suggested Citation

Jong, Thijs and Woerdman, Edwin, European Energy Regulators: An Empirical Analysis of Legal Competences (April 19, 2015). University of Groningen Faculty of Law Research Paper No. 2015/24, Available at SSRN: https://ssrn.com/abstract=2595736 or http://dx.doi.org/10.2139/ssrn.2595736

Thijs Jong (Contact Author)

affiliation not provided to SSRN

Edwin Woerdman

University of Groningen - Faculty of Law ( email )

9700 AS Groningen
Netherlands
+31 50 363 5736 (Phone)
+31 50 363 7101 (Fax)

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