The Italian Regulatory Authority for Electricity Gas and Water
The Italian Regulatory Authority for Electricity Gas and Water is the independent regulatory body of the energy markets and the integrated water services. It was established by law 14th
November 1995, n.481 with the purpose to protect the interests of users and consumers, promote competition and ensure efficient, cost-effective and profitable nationwide services with satisfactory quality levels in the electricity and gas sectors. With law 22nd
December 2011, n. 214, new regulatory competences in the integrated water services sector were attributed to the Authority, while Legislative decree 4th
July 2014, n. 102, assigned new tasks in the district heating and cooling sector.
The Authority core regulatory competences refer mainly to the definition and maintenance of a reliable and transparent tariff system - reconciling the economic goals of operators with general social objectives and promoting environmental protection and the efficient use of energy- the setting quality of service standards and the definition of a framework aimed at the protection and empowerment of consumers in competitive markets. The Regulator also provides specialized advice and reports to the Government and Parliament on the regulated sectors and formulates observations and recommendations for further policy actions.
The Authority is governed by a Board of Commissioners in charge for seven years. Currently, the Commissioners are: Guido Bortoni
, President, Alberto Biancardi, Rocco Colicchio
and Valeria Termini.
Funding, transparency and accountability
The Authority is fully financed through a levy on regulated entities and it is completely independent from the State budget.
Its activity is defined within general policy guidelines provided by the Government and Parliament through a rolling pluri-annual strategic plan.
The decision making process is independent, transparent and fully accountable. The Authority involves on a regular basis the stakeholders of the regulated sectors (consumers, system operators, market participants, trade unions and their associations) in its decision-making process through consultation documents and public hearings and the most relevant decisions are also subject to a Regulatory Impact Analysis (RIA). Annual Reporting duties to the Parliament and Government, dedicated appeal procedures against its decisions and the overview of the Court of Auditors on its accounts complete the framework of accountability of the Regulator. A permanent Observatory of Regulation has been established to allow all stakeholders to provide input to the Authority on a regular basis.
The main legal acts governing its action and all its decisions, rulings and opinions are fully published on its website (an English summary is generally made available for the most important acts).
The Authority in the international context
The Authority is a Member of the Board of Regulators of the Agency for the Cooperation of Energy Regulators (ACER), the EU Agency established in 2009 to support National Regulatory Authorities in the development of the European regulatory framework in the energy sectors and to coordinate regulation on cross-border issues. The Authority's staff is participating actively to the ACER working groups dealing with electricity, gas, infrastructure development and REMIT implementation activities.
The Authority is a founding member of the Council of European Energy Regulators (CEER), the non-for-profit association of independent National Regulatory Authorities established on a voluntary basis to promote cooperation, exchange best practices and to facilitate the creation of a single, competitive, efficient and sustainable EU internal energy market. CEER also maintains numerous contacts with new regulators or associations of extra EU regulators, especially in EU bordering countries.
Through CEER it participates also to the International Confederation of Energy Regulators (ICER),
a voluntary framework for cooperation between energy regulators from around the globe aiming to improve public and policy-maker awareness and understanding of energy regulation and its role in addressing a wide spectrum of socio-economic, environmental and market issues.
The Authority holds the permanent vice-presidency of the Association of Mediterranean Regulators for Electricity and Natural Gas (MEDREG)
a body established to promote the integration of the energy markets in the Mediterranean area. MEDREG Secretariat is set in Milan and hosted by the Italian Regulatory Authority.
As a representative of a Contracting party of the Energy Community (EnC), the Authority is also a full Member of the Energy Community Regulatory Board (ECRB),
the technical body dedicated to oversight all regulatory activities established by the ENC Treaty.
The Authority holds the presidency of the Network of European Water Regulators (WAREG),
created in 2014 in Milan. Today WAREG gathers 25 regulatory bodies with the purpose to promote cooperation among its Members, as well as with EU Institutions, European water sector associations, international organizations and other relevant stakeholders, to exchange best practices and to foster a harmonized and stable regulatory framework at European level.
The Authority takes part also in Twinning
projects financed by the EU Commission.