Continuity of electricity supply regulation driven by economic incentives: Does it work? The Italian experience

In Italy the Regulatory Authority for Electricity and Gas (Autorità per l´energia elettrica e il gas, AEEG) is responsible for the regulation and control of quality in both sectors. The Law n. 481/95, that instituted AEEG, pays close attention to quality regulation. Customers protection and quality improvement are among the main goals pursued by the Authority, which has the legal powers for setting compulsory quality standards, associated either with individual compensations or with general tariff adjustments related to quality actual achievements. To ensure the maximum level of accountability in its decisions, no decision is taken without a consultation round. AEEG issues consultation papers containing guidelines and proposals before it takes any decision on quality standards. Consultation papers are published on AEEG web site and all involved stakeholders are invited for views before the final decision. During the consultation process, all concerned parties may formulate questions, offer comments, and submit written proposals. On the occasion of important decision-making, formal hearings are organised with the main stakeholders (utilities, consumer associations, trade unions, environmental associations, technical bodies and associations, etc.).