World energy regulators commit to eight concrete actions

to help meet the climate change challenge

Today, at the fourth World Forum on Energy Regulation¹ (WFER IV) in Athens, energy regulators worldwide made a joint statement on climate change. This statement comes just weeks before the United Nations Climate Change Conference in Copenhagen in December 2009².

The “World Energy Regulators’ Statement on Climate Change” explains the energy regulators’ role in meeting the climate change challenge³ and commits regulators worldwide to eight concrete actions⁴.

Chair of the European Energy Regulators and host of the WFERIV, Lord Mogg, said

“Climate change requires a global response. For the first time, energy regulators from across the globe have jointly committed to play their role in overseeing efficient and climate responsible energy markets. This is much more than simply adding our voice in supporting a global agreement on climate change in Copenhagen. In addition to setting up the new International Confederation of Energy Regulators (ICER) we have committed ourselves, within our areas of responsibility, to eight specific actions to help meet the climate change challenge. One of these pledges is a report on best regulatory practices to promote energy efficiency which will be presented at the next Energy Ministerial meeting of the G8 countries in 2010. I particularly welcome the Chinese commitment to consider positively their participation in ICER”

Energy regulators can help manage the transition to a low carbon economy in several ways such as promoting energy saving measures⁵ or in their core job of regulating electricity and gas grids⁶.

Commenting on the contributions of the European Energy Regulators’ to combating climate change⁷, Lord Mogg, said

“Reducing carbon emissions and controlling energy demand requires upgraded and smarter electricity grids in Europe and energy efficiency measures. Our national energy regulators seek to ensure that necessary value-for-money investment in grids is planned and carried out so that new capacity, including low carbon or renewables capacity, can be connected. This year CEER published a Sustainability Report. It assesses the progress that Europe has made against the year 2020 targets on carbon abatement, renewable deployment and energy efficiency. We also work to promote competitive and integrated markets in Europe which is key for meeting the EU’s energy objectives of sustainability, competitiveness and security of supply.”

This statement on climate change is the first output of the new International Confederation of Energy Regulators (ICER⁸), established yesterday. ICER is a global partnership comprising 11 regional associations of energy regulators worldwide, chaired by Lord Mogg, the President of the Council of European Energy Regulators (CEER).

CEER has been given formal status as Observer at the Copenhagen Climate Change Conference in December. CEER will use the opportunity, together with other regional bodies of regulators, to highlight the international work of energy regulators on climate change notably through ICER’s new virtual working group on climate change.

2.       Any actions taken at the United Nations Framework Convention on Climate Change (UNFCCC) in Copenhagen (in December 2009) to limit greenhouse gases have the potential to significantly impact on the energy sector its regulation. Energy regulators stand ready to play their part in delivering the outcomes of the Copenhagen Conference through efficient and competitive energy markets.

3.       In the next few years climate change policies will require substantial development of new and best available technologies aimed at reducing greenhouse gas (GHG) emissions and increasing energy efficiency. For example, ageing networks will need to be replaced or reinforced to connect renewables or other forms of low carbon technologies. Regulators (who regulate the electricity and gas grids) are fundamental to the adaptation of the network companies in responding to climate change. Regulators need to provide certainty and clarity alongside consistent positive messages to encourage the large scale and long term investment that the networks will need. Some regulators already incentivise (e.g. through price or revenue controls) network operators to develop smart networks, integrate best and available technologies and promote energy efficiency measures.

4.       The World Energy Regulators’ Statement on Climate Change (20 October 2009) contains eight commitments by energy regulators which fall within their remit of responsibilities. In summary form, these are:

(1) Supporting the delivery of energy to all customers in developing markets.

(2) Creating a new International Confederation of Energy Regulators (ICER) in order to take forward energy regulators’ international cooperation and dialogue on global issues such as climate change

(3) Promoting energy efficiency as a tool to mitigate climate change. Regulators will prepare a report, for the Energy Minister of the G8 countries, on best regulatory practices regarding the promotion of energy efficiency. This builds upon a commitment already given in the G8+ Energy Regulators Statement (May 2009) in the framework of the Summit of the Energy Ministers of the G8 countries (Canada, France, Germany, Italy, Japan, Russia, U.K. and U.S.A.) in May 2009.

(4) Conducting a review on renewable energy and distributed generation.

(5) Sharing best practice which may be used world-wide in meeting GreenHouse Gas (GHG) emission targets, in particular exploring ways of maintaining a climate of timely, well targeted and efficient investments in grid infrastructure and energy efficiency.

(6) Working in close cooperation with our nearest neighbours, to foster stronger interconnection and facilitate compatibility of regulatory frameworks to create more efficient energy systems and provide clarity and certainty to the market.

(7) Reinforcing regulators’ engagement in the international climate change process by participating as observers to the sessions of the United Nations Framework Convention on Climate Change (UNFCCC).

(8) Promoting reliable energy supplies and reasonable energy costs to all customers.

For photos of or quotes by keynote speakers at the World Forum on Energy Regulation (WFERIV) see the Press Section of the WFERIV website www.worldforumiv.info