international
The Energy Regulator’s Role in Mitigating the Impact of COVID-19
Through joint collaboration, the United States Agency for International Development (USAID) and the National Association of Regulatory Utility Commissioners (NARUC) conducted a webinar to share best practices from U.S. regulatory experts on the internal and external protocols and procedures they have put in place to respond effectively to the COVID-19 pandemic.
In emergency situations, the regulator is uniquely situated to make informed decisions to help mitigate the impacts felt by consumers and the energy sector as a whole. In the name of public service and utility regulation for consumer welfare, these regulatory actions ensure that Americans have electricity and water during this public health emergency. They also work to protect the employees needed to provide these essential services so that they stay safe and healthy.
To help disseminate valuable information during this difficult time, this webinar intends to explore U.S. practices and spur meaningful discussions to bolster the efficacy of global response strategies.
View the slides from the webinar.
View the recording from the webinar.
Joint Webinar Series on Implications of the Global Pandemic on Tariff Design and Utility Finances
Following natural disasters, cyberattacks, or other disruptions to the supply of electricity, utilities often seek guidance from regulators on measures to address their financial concerns as they continue to provide reliable service to their customers. The objective of this webinar series is to examine how regulators can consider the short and long-term implications of the COVID-19 global pandemic on the energy sector, with respect to tariff design and consideration of the financial status of utilities.
This series discusses the practical tariff treatments that regulators can consider as the impacts of the pandemic continue to play out. Whether the sector is unbundled or vertically integrated, all utilities are facing issues that have never been encountered before. The expert panelists will contextualize a variety of tariff-related issues and potential treatments, discussing the implications regulators should consider. For example, while deferrals on payments provide relief for consumers (which may be prudent given the massive unemployment resulting from COVID-19), utilities need to avoid being put into a situation that potentially harms their long-term economic viability.
Webinar 1: Regulatory Tariff Considerations due to the Pandemic
In this kickoff webinar, the following list of questions are addressed. What happens if tensions increase regarding payment transfers between suppliers and utilities as a growing number of customers default on their electric/gas bills and the bad debts are transferred from the suppliers to the utilities? What is the appropriate role of the regulator in ensuring the financial viability of utilities in competitive markets?
View the slides from the webinar.
View the recording from the webinar.
Webinar 2: The Regulatory Role in Supporting Cybersecurity Investments
Experts have warned of an increase in cybersecurity threats as the COVID-19 pandemic creates opportunities for malign actors to increase their cyberattacks. Vulnerabilities have also increased as resources continue to be limited, and software updates become less frequent. As such, it is even more important for regulators and utilities to further cooperate and employ necessary cybersecurity investments during this time, despite the financial and resource constraints.
During this portion of the webinar series, NARUC presented its groundbreaking report, Evaluating the Prudency of Cybersecurity Investments: Guidelines for Energy Regulators, funded by USAID. While the implementation of cybersecurity measures is typically the responsibility of power system operators, regulators have an obligation to ensure that investments made in the name of cybersecurity are reasonable, prudent, and effective. These guidelines are intended to assist regulators in defining tariffs by establishing a regulatory approach to enhance the cybersecurity stance of their power systems.
View the slides from the webinar.
View the recording from the webinar.
Webinar 3: Transition Plans and Cost Recovery following the COVID-19 Pandemic
What are the next steps as regulators and utilities transition out of the emergency phase during the COVID-19 pandemic? In the U.S., some energy regulators have rules under which a utility can come in for an immediate rate increase due to its inability to pay all of its bills. While this has been invoked in the past, it is a very strict measure and requires full transparency of the utility’s financial situation. How will U.S. regulators deal with the potential for multiple utilities to potentially seek this type of support, all at the same time? What constitutes a “fair and reasonable” rate of return during and following this global pandemic? How does the regulator balance the needs of the utilities with consumers?
In Europe, regulators are adopting a “dynamic regulation” approach based on an interconnected energy system that is grounded on well-functioning markets. This type of system will function as a strong safeguard during the crisis, and will help to mitigate long-term impacts of the pandemic on consumers and the energy sector. Through their association, CEER, European energy regulators are sharing best possible scenarios for the phasing out of the transition period.
View the slides from the webinar.
View the recording from the webinar.
U.S. - Asia Gas Partnership (AGP): Webinar on the USAID/NARUC Roadmap for the Development of Downstream Natural Gas Markets
With support from USAID, the Roadmap for the Development of Downstream Natural Gas Markets is a publication in development by NARUC and USAID’s Regional Development Mission for Asia (RDMA). The Roadmap serves as a comprehensive regulatory tool to aid regional regulators and relevant ministries in mapping out essential regulatory steps, provisions, and considerations necessary to establish diversified and competitive downstream gas sectors in countries integrating imported LNG resources.
This webinar focuses on key elements and recommendations from the Roadmap, including the goals and mechanisms that are needed to achieve robust gas markets, foundational regulatory provisions required to ensure fair and competitive natural gas operations, and crucial questions to examine in assessments of a country’s downstream natural gas market prospects.
View the recording from the webinar.