Designing and implementing an energy regulatory framework in a transition economy: the opportunity of the demand side

Panel: Panel 1: Policy and Programmes - Who can deliver DSM?

Authors:
Catherine Vallee, BCEOM
Michel Labrousse, BCEOM
Pascal Habay, BCEOM
Arthur Spring, BCEOM

Abstract

Demand side management is increasingly applied in developed countries. In parallel, a majority of international projects for restructuring energy network sectors are implemented, comprising legal and regulatory reforms, financial and economic sustainability and modifying the structure and the ownership of energy firms. Those reforms usually respond to the preoccupation of efficiency, safety, quality of service and tariffs as a signal to consumers. In a majority of cases, competition is introduced at the level of production. However, considering the natural monopoly situation of network energies, the competition, which is one of the conditions for efficiency, is difficult to apply in this activity.

And yet, energy network operators are in direct contact with consumers. The internationally funded projects offer an opportunity to include DSM options within a consistent legal and regulatory framework in a consistent way, thereby defining the responsibilities and obligations of each actor.

Western European experiences give a wide panorama of necessary conditions and consequent implementation schemes. In the light of these experiences, characteristics of economies in transition bring to the conclusion that the inclusion of DSM within the legal and regulatory framework, and further, the inclusion of energy end use efficiency within the government? attributions is a promising option.