Regulating for Consumers? The Agency for Cooperation of Energy Regulators

Abstract

The European Commission’s proposal for the Energy Union is a guiding strategy to integrate the European Union (EU)’s energy market, improve security of supply and revitalize energy efficiency measures. This chapter establishes a connection between the Energy Union and the Agency for Cooperation of Energy Regulators (ACER). Regulation of the energy market must contribute in three areas for the Energy Union to be judged successful: (1) Integration of national markets into the EU’s Internal Energy Market (IEM); (2) improvement in energy security; and (3) lower consumer bills. The aim of this chapter is to review the institutional structure and regulatory tools used to fulfill the energy security mandate of the Energy Union and the ability to impact energy prices. Increasing levels of energy poverty and divergent efforts to improve energy security are hallmarks of liberalized markets, deficiencies the Energy Union attempts to resolve. Energy justice emerges as a means to alter liberal energy markets dominated by private companies, with politicians redirecting profits to consumers. However, it is argued here, transparency needs to be a hallmark of the Energy Union, battling corruption and improving decision-making thereby assisting rate-payers in lowering energy bills.