OECD discussed infrastructure management
At the 7th session of the Network of Economic Regulators, at the Organization for Economic Cooperation and Development (OECD) on 2 Novemberя 2016 in Paris (France) representatives of regulators of OECD member-states and OECD observers discussed specifics of infrastructure control.
Representatives of OECD Directorate for Public Governance and Territorial Development discussed the findings and conclusions of a survey on the regulator role in infrastructure control. Both OECD member-states and observers, such as FAS, were involved in preparing the survey.
The survey covered 23 sectors and sub-sectors regulated by 33 tariff bodies. Common challenges for the surveyed countries included: balance (difficulties of stimulating investments when making decisions on tariffs or infrastructure access), data (informational asymmetry and access to the required data to facilitate executions of the regulator’s functions), coordination (a dialogue between regulators and other parties – businesses, consumer and the government for clear delineation of responsibilities and functional optimization), involvement of other parties in decision-making, etc.
OECD divides the challenges facing regulators in infrastructure control into external and internal. The internal factors can be a balance between regulators and investment stimulation, data and informational asymmetry, coordination, etc. Among external factors there are an impact of new technologies upon the regulator’s role, control access to resources and assigning powers), changing the regulator’s functions and role.
Tariff-setting is the most frequently exercised function of an infrastructure regulator, typically, for long-term prospects. Another widely used regulatory function is to monitor, submitting information for the government and interested persons.
The third function relates to control of infrastructure access, both providing non-discriminatory conditions and payment for access.
Additional functions involve the dispute resolution procedure, consumer protection, issuing permits and licenses, planning and setting standards, etc.
Deputy Head of FAS, Anatoly Golomolzin summed up: “Not all of the above functions fall under FAS competence so coordination with other bodies is required. FAS Board on tariff regulation comprises interested federal executive bodies. Also FAS Consumer Council includes representatives of consumers of regulated services. Participation of the interested authorities and consumers in the procedures for making and control over tariff decisions”.