The energy sector can be managed more efficiently on condition that the regulator, the National Agency for Energy Regulation (NAER), really becomes transparent and independent. This is the main conclusion of a position note signed by Denis Cenusa, associate expert of the independent analytical think tank “Expert-Grup”.

The author of the note says the transposition of the European legislation plays a positive role in improving the quality of regulation in the energy sector. This is one of the commitments assumed by Moldova before the EU through the Association Agreement and before the Energy Community.

The necessity of increasing transparency of regulation in the energy sector is one of the conditions accepted by the Moldovan authorities for accessing financing from the IMF based on a program, stated Denis Cenusa.

The expert makes reference to the conclusions of the assessment report of the Secretariat of the Energy Community that was published in September 2016. This ascertained that the NAER faces a series of problems. Among these is the low transparency and vague provisions concerning the appointment and dismissal of the NAER directors, insufficiency of selection criteria for naming director generals and lack of a robust and inclusive mechanism of consultation on the regulatory activity.

Cenusa reminds of the existence of indirect political and public pressure on the NAER’s decisions concerning the adjustment of the natural gas and power tariffs, in particular for 2015- 2016.

Among the measures to remedy the situation and ensure the transparency and independence of the NAER, the expert suggests setting a transparent mechanism for naming the Agency’s directors, with clear selection criteria that would ban any form of affiliation with political interests expressed at least two-three years before submitting the application.

Furthermore, it is invoked the necessity of introducing the obligation of constituting the Board of Experts under the NAER so as to ensure a greater and unrestricted participation by representatives of civil society in the process of drafting and consulting NAER decisions.

Denis Cenusa also proposes developing a set of performance indicators by the NAER so as to internally assess the performance of the institution, in addition to the formulation of the annual sector-level report.

The guaranteeing of the transparency and independence of the NAER is envisioned by the good operating practice of the Energy Community and coincides with the strategic objectives of the structural reforms in the energy sector, reflected in the commitments assumed before the foreign partners.