International Energy Regulation: A Tale of Two Standards

01 March 2021
Dr. Jeff D. Makholm

In an article in the March 2021 issue of the Wiley journal Climate and Energy, NERA Managing Director Dr. Jeff D. Makholm reviews key distinctions between international energy regulatory standards. Dr. Makholm notes that each international regime reflects a concatenation of institutions coming from different histories, legal rules, and democratic political choices.

In particular, Ofgem in the UK and the New York Public Service Commission (NYPSC) in the US are two highly prominent, historically important energy regulators on the international stage. Dr. Makholm provides an assessment of the differences between the quasi-judicial constitutional standard in the US and the quasi-ministerial competition standard in the UK. The differences in standards result in varying outcomes when valuing regulated private property and implementing climate policies.

The rules require any company doing business in the US and UK in the regulated energy market to understand and appreciate the differences and to plan and invest accordingly.

Makholm, Jeff D. (March, 2021). “International Energy Regulation: A Tale of Two Standards,” 37/8, ©2020 Wiley Periodicals, Inc., a Wiley company.