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©	
  Vlerick	
  Business	
  School	
  
BACKGROUND	
  
“If	
  you	
  put	
  the	
  federal	
  
government	
  in	
  charge	
  of	
  
the	
  Sahara	
  Desert,	
  in	
  five	
  
years	
  there	
  would	
  be	
  a	
  
shortage	
  of	
  sand.”	
  
“The	
  government	
  
solu0on	
  to	
  a	
  
problem	
  is	
  usually	
  
as	
  bad	
  as	
  the	
  
problem.”	
  
©	
  Vlerick	
  Business	
  School	
  

2	
  
ENERGY	
  SECTOR	
  REFORM	
  

Production

Transport

Competitive activities

Production

Wholesale

Transport

©	
  Vlerick	
  Business	
  School	
  

3	
  

Distribution

Consumer

Monopolistic activities

Retail

Distribution

Consumer
REGULATORY	
  AFFAIRS	
  
§ Why	
  regulate?	
  
§ What	
  is	
  good	
  regula:on?	
  
§ What	
  is	
  a	
  good	
  regulatory	
  authority?	
  

4	
  

©	
  Vlerick	
  Business	
  School	
  
WHY	
  REGULATE	
  

5	
  

©	
  Vlerick	
  Business	
  School	
  
WHAT	
  IS	
  GOOD	
  REGULATION	
  

6	
  

©	
  Vlerick	
  Business	
  School	
  
WHAT	
  IS	
  A	
  GOOD	
  REGULATORY	
  AUTHORITY	
  

7	
  

©	
  Vlerick	
  Business	
  School	
  
TAKE	
  WAY	
  MESSAGES	
  
§ Good	
  regula:on	
  addresses	
  market	
  failures	
  (without	
  making	
  
it	
  worse);	
  the	
  energy	
  sector	
  provides	
  textbook	
  examples	
  
§ Energy	
  Regulators	
  are	
  ins:tu:ons	
  created	
  by	
  government	
  
to	
  implement	
  sector	
  specific	
  regula:ons	
  
§ Good	
  regulatory	
  authori:es	
  
§  Are	
  independent	
  from	
  government	
  and	
  from	
  industry	
  to	
  avoid	
  
government	
  failures	
  (regulatory	
  capture	
  &	
  holdup)	
  	
  
§  Have	
  adequate	
  powers	
  (to	
  monitor,	
  decide,	
  and	
  enforce),	
  
resources	
  to	
  use	
  these	
  powers	
  (people	
  and	
  budget),	
  while	
  also	
  
remaining	
  accountable	
  

8	
  

©	
  Vlerick	
  Business	
  School	
  
leonardo.meeus@vlerick.com	
  
	
  

	
  LeonardoMeeus	
  
	
  
	
  

THANK	
  YOU!	
  

9	
  

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Regulatory Affairs

  • 2. BACKGROUND   “If  you  put  the  federal   government  in  charge  of   the  Sahara  Desert,  in  five   years  there  would  be  a   shortage  of  sand.”   “The  government   solu0on  to  a   problem  is  usually   as  bad  as  the   problem.”   ©  Vlerick  Business  School   2  
  • 3. ENERGY  SECTOR  REFORM   Production Transport Competitive activities Production Wholesale Transport ©  Vlerick  Business  School   3   Distribution Consumer Monopolistic activities Retail Distribution Consumer
  • 4. REGULATORY  AFFAIRS   § Why  regulate?   § What  is  good  regula:on?   § What  is  a  good  regulatory  authority?   4   ©  Vlerick  Business  School  
  • 5. WHY  REGULATE   5   ©  Vlerick  Business  School  
  • 6. WHAT  IS  GOOD  REGULATION   6   ©  Vlerick  Business  School  
  • 7. WHAT  IS  A  GOOD  REGULATORY  AUTHORITY   7   ©  Vlerick  Business  School  
  • 8. TAKE  WAY  MESSAGES   § Good  regula:on  addresses  market  failures  (without  making   it  worse);  the  energy  sector  provides  textbook  examples   § Energy  Regulators  are  ins:tu:ons  created  by  government   to  implement  sector  specific  regula:ons   § Good  regulatory  authori:es   §  Are  independent  from  government  and  from  industry  to  avoid   government  failures  (regulatory  capture  &  holdup)     §  Have  adequate  powers  (to  monitor,  decide,  and  enforce),   resources  to  use  these  powers  (people  and  budget),  while  also   remaining  accountable   8   ©  Vlerick  Business  School  
  • 9. leonardo.meeus@vlerick.com      LeonardoMeeus       THANK  YOU!   9