1. Benchmarking State Energy Authorities PHLG Meeting 26 March 2004 Durres, Albania Dr Helene Ryding Athens Process Secretariat A EuropeAid project

2. 18/03/20042 What is a State Energy Authority? A government body within a Ministry At State level With responsibility for energy policy With a primary purpose of ensuring the provision of energy under secure conditions with high level of public service and consumer protection

3. 18/03/20043 Why is it necessary? EU Entry and SEEREM requires major task of legal harmonisation The tasks must be led by a Ministry Monitoring the implementation of SEEREM is a ministerial task

4. 18/03/20044 Why benchmark? Four components to be benchmarked: Existence Adequacy of legislation Operation in practice Performance

5. 18/03/20045 Existence Existence: Must be at national level (only national negotiations with the EU). Bosnia and Herzegovina, Serbia and Montenegro need clarification Separate or combined? With environment (plus spatial planning) With industry and trade Energy and mining Must include nuclear energy

6. 18/03/20046 Adequacy of legislation Ministry must have policy control for: Competitive energy supply Security and reliability of supply Environmental protection (including nuclear safety, pollution and climate control) Promotion of energy efficiency and renewable energy supply Consumer protection: reliability and affordability; Public service provision Overlaps with Competition, Environment, Social Security and needs clear division of responsibilities Requires liberalisation and reduction of State controlled activities

7. 18/03/20047 Adequacy of legislation Withdrawal from: Price control by the Ministry Detailed planning of future investment. Operational control of state owned enterprises Non-corporatised legal form of state enterprises Social responsibilities of state owned enterprises Energy inspection of enterprises

8. 18/03/20048 Adequacy of legislation Ministerial Duties Policy-making Drafting legislation Monitoring and enforcement Rights of the public for ministerial service Appropriate, accurate, and prompt information Civil service neutrality Transparency No corruption Mechanism to challenge policy and administrative decisions

9. 18/03/20049 Adequacy for practical operation Strategic management Resources Competences Working culture

10. 18/03/200410 Strategic Management A Ministry is a business but: The management board regularly gets kicked out by the shareholders Short term perspective of senior managers means that there is no long term planning (succession planning, fast track promotion) Often board members have no management skills Workers survive by not rocking the boat inside the organisation Promotion and demotion can be linked to politics not merit Change management skills not always available Inherited working culture is difficult to change Some bureaucracy is inevitable in public organisation Some differences in management skills needed between public and private organisations This applies to EU Member States and the European Commission as well

11. 18/03/200411 Resources Annual or rolling 3 year budget? Merging ministries to save money? Resources match expanding workload with EU entry? Reallocation of existing staff to new tasks without training?

12. 18/03/200412 Competences Competences of a modern Ministry of Energy: Economic analyses and policy development Initiation and management of the legislative process Monitoring of policy implementation and control Strategic management of state owned assets International negotiations on energy issues Management control over agencies Existing competences: Mainly technical Shortage of lawyers and legal experience Impressive ability to pick up new language Need to employ specialists to fill the gap, but are too expensive to hire in-house

13. 18/03/200413 Working culture Important because organisation already exists doing a similar job Independent Regulator is completely new Independent TSO “begins again” as a new organisation with new tasks and new management Working culture needs to change to bring Management effectiveness Civil service neutrality/ culture Decent employment conditions Transparency Public service

14. 18/03/200414 Performance tests Deadlines of Athens Memoranda for legislation are met Are new institutions independent or does Ministry try to interfere? Legal harmonisation of the energy acquis: does national legislation accurately transpose the acquis? Is the public properly informed? Are State-owned assets performing profitably? Is competition developing? Is market opening taking place as planned?