Regulatory authority

State of compliance

Since the alignment of national legislation with the requirements of the Third Energy Package in 2016, the organisation, competences and independence of the Energy Regulatory Office (ERO) is compliant with the Energy Community acquis communautaire. ERO is headed by five Board members, including a chairperson. The term of Board members is limited to a period of five years, renewable once and is subject to a rotation scheme. The position of one Board member is currently vacant which, however, does not impact the necessary decision making quorum. As an aspect for improvement, the selection procedure for commissioners would be better protected from political influence if an expert committee was involved. ERO is accountable for its activities by presenting its annual report to the Parliament.

ERO showed a rather inconsistent regulatory profile: while the authority ranks among those regulators that successfully certified its national transmission system operator and included the Network Code Regulations into national rules even without having in place formal transposition of these rules that would allow for enforcement by ERO, ERO also postponed electricity market liberalisation for customers connected to 35kV level for another year. This must be considered a failure to promote one of the key regulatory objectives. Discussions on alignment of staff salaries with those of the public sector constitute a potential threat to the financial autonomy of the regulator that is already now facing problems to attract sufficient qualified human resources.