06/05/2022

On 5 May, from 2:30 p.m. to 4:30 p.m., ERSE hosted a Webinar on “Economic regulation and its impact on consumers”, aimed at bodies active in the field of consumer protection and out-of-court settlement of disputes, but was also open to the general public, with around 65 participants.

The information session, which was part of the ERSEforma programme, explained the need for regulation in the electricity and gas sectors with natural monopolies and the process through which ERSE, as the economic regulator, defines the allowed revenues for the regulated activities, and the impact on consumers.

The speakers, André Rocha and Inês Chaves, from ERSE’s Financial and Economic Directorate, explained the need for economic regulation in situations where there is no  competition, due to the existence of natural monopolies (as in the case of electricity and natural gas transport and distribution) or of other types of restrictions (as in the case of supply of last resort), in order to simulate a competitive environment that makes it possible to achieve the economic and financial balance of regulated activities and to guarantee that the quality of service provided is adequate and meets pre-established standards.

In this sense, the economic regulation methodologies used by the regulator in the energy sector were explained, as well as the challenges faced by ERSE in defining the allowed revenues in order to balance 3 objectives: to adequately remunerate the regulated activity, to ensure that the level of costs is as efficient as possible and that the service provided to consumers meets efficient levels of quality.

Finally, the outcome of regulation over the years was addressed based on ERSE’s continuous monitoring of the economic and financial performance of the regulated activities. ERSE’s actions over time have generally allowed a reduction in the costs of regulated activities, without compromising the quality of service of regulated sectors.

Click on the presentation for more information.