GOVERNANCE OF REGULATORS DRIVING PERFORMANCE AT PORTUGALS ENERGY SERVICES REGULATORY AUTHORITY.

Foreword Acknowledgements Abbreviations and acronyms Executive summary Role and objectives of ERSE Key recommendations Input Key recommendations Process Key recommendations Output and outcome Key recommendations Assessment and recommendations Introduction Role and objectives Mandate Functions and powers Recommendations: Strategic framework (vision, mission and objectives) Recommendations Co-ordination Recommendations Input into policy making and relations with the executive and legislative branches Recommendations Independence Recommendation: Input Process Governing body and decision making Recommendations: Internal organisation and management Recommendations: Regulatory quality tools Recommendations Audit, inspections and enforcement Recommendations: Engagement and transparency of engagement process Recommendations: Output and outcome Data collection, management and analysis Monitoring and reporting on the performance of the sector and the regulator Recommendations: Notes References 1 Regulatory and sector context Institutional framework Portugal’s energy sector Energy supply and demand Energy policy Market structure Electricity market and key institutions (mainland Portugal) Natural gas market and key institutions (mainland Portugal) Interconnections Fuels Autonomous regions Tariffs Tariff deficit Key legislation Electricity Electric mobility Natural gas Fuels Notes References 2 Governance of the Energy Services Regulatory Authority Role and objectives Mandate and objectives Mission, vision and values Functions and powers Regulatory functions Tariff setting Advisory functions Mediation Supervision Sanctioning Co-ordination with other entities Input into policy Strategic objectives Four-year strategic plan Process for setting strategic objectives Independence and preventing undue influence Relations with government Fostering a culture of independence Input Financial resources Process for setting fees Process for setting fines Managing financial resources Preparation of annual budget Human resources Staff composition Recruitment Contract conditions Remuneration and career progression Training Performance evaluation Process Governing body and decision making Selection and dismissal of members of the board Decision-making process Internal organisation and management Current teams New teams to be created through the process of restructuring Regulatory quality tools Ex ante assessments Ex post reviews Inspections, audits and enforcement Inspections and audits Inspections Audits Enforcement Consumer protection Engagement and transparency of engagement process Consultative councils Advisory Council Tariff Council Fuels Council Public consultations Appeals Output and outcome Data collection, analysis and management Monitoring and reporting on the performance of the sector Monitoring and reporting on the performance of ERSE Notes References Annex 2.A. Composition of the Advisory Council Annex 2.B. Composition of the Tariff Council Annex 2.C. Composition of the Fuels Council Annex A. Methodology Analytical framework Performance indicators Approach References Annex A. Methodology