The package of legislation establishes real powers for national regulatory authorities (NRAs). Most of all, this includes the possibility of imposing penalties on undertakings that can run up to 10% of the annual turnover of the energy company concerned. The new legislation aims to tackle the problem facing many NRAs, established under the 2003 directives, seen as lacking independence from governments and having insufficient powers and discretion. The 2009 gas and electricity directives thus clearly detail the tasks and duties of national regulators as well as spell out where the European regulator should step in. Member states are to ensure that the NRAs are independent and can take autonomous decisions. There should be a separate and sufficient annual budget allocation to allow the NRA to carry out its duties and tasks.

NRAs, first and foremost, are responsible for certifying TSOs and ensuring their continuing compliance with the unbundling requirements. To guarantee this “fully effective separation” of network activities from supply and production, NRAs should refuse certification to TSOs not complying with the unbundling rules. The NRAs should hereby take “utmost account” of the Commission’s opinion. The Commission also gives an “opinion” on certification of TSOs controlled by third-country interests (see other article).

NRAs can further request relevant information from companies as well as making “appropriate and sufficient” investigations and settling disputes. The national regulators should play an “active” role ensuring that balancing tariffs and other charges are non-discriminatory and cost-reflective by being able to fix or to approve tariffs or the methodologies for tariff calculation. Energy regulators are also to be granted the power to decide on “appropriate” measures to ensure customer benefits by promoting “effective” competition. NRA powers extend to public service obligations and to the protection of vulnerable customers.

Background

NRA tasks are listed in detail. They include fixing and approving regulated transmission or distribution tariffs; ensuring compliance with the directives and regulations; cooperating with the agency and other NRAs on cross-border issues; ensuring enforcement of consumer protection measures as well consumption information obligations; publishing recommendations on supply tariffs; monitoring execution of the non-binding ten-year network development plans; monitoring market transparency, openness and competition as well as generally monitoring transmission and distribution system operators (TSOs and DSOs) service levels as well as their compliance with safeguard and other technical standards.