L’AIR nella pratica di una Autorità indipendente: l’esperienza dell’Autorità per l’energia elettrica e il gas di applicazione dell’AIR alla regolazione della qualità del servizio

In the last ten years Regulatory Impact Analysis has become the instrument providing groundwork for evidence-based regulatory decisions in most developed countries. However, to an increase in quantity, it did not correspond an increase in quality. In Italy, Regulatory Impact Analysis has been in place for ten years on paper, but in practice it has not been performed consistently. Of particular interest is the case of independent regulatory authorities, which have been required to apply Regulatory Impact Analysis since 2003. This paper explores how Regulatory Impact Analysis is carried out, by examining in depth how an individual case –on the Regulation for Quality of Service- was executed by the Autorità per l’energia elettrica e il gas. The aim is to provide a picture of the process leading to the final Regulatory Impact Analysis report, rather than just a study of its content. The case illustrates how Regulatory Impact Analysis, when properly employed, can be an important aid to the regulatory decision, not only by assessing ex ante the economic impacts of regulatory proposals in terms of costs, benefits and risks, but also opening the spectrum of policy alternatives and systematically considering stakeholder opinions as part of the decision-making process. This case highlights also several difficulties, analytical and process-related, that emerge in practical applications. Finally, it shows that the experience and expertise built by the regulatory authority over the years had a significant impact on the quality of the analysis.

Impact Assessment in the EU: a tool for better regulation, less regulation or less bad regulation?

Impact Assessments (IAs) were introduced at the EU level under the rhetorical facade of ‘better regulation’. The actual aim was to improve not only the quality but also the reputation of EU regulation before stakeholders. However, evidence brought forward by a number of evaluations pointed out that IAs are yet to achieve acceptable quality standards. The paper offers an overview of different disciplinary approaches for looking at IAs. It suggests that risk regulation encompasses the theoretical foundations to help understand the role of IAs in the EU decisionmaking process. The analysis of 60 early days preliminary IAs provides empirical evidence regarding policy alternatives, methodology of consultation and use of quantitative techniques. Findings suggest that dawn period IAs were used mainly to provide some empirical evidence for regulatory intervention in front of stakeholders. The paper concludes with assumptions about the future role of IAs at EU level.

Discrete demand side control performance under dynamic building simulation: a heat pump application

This study presents the findings of applying a Discrete Demand Side Control (DDSC) approach to the space heating of two case study buildings. High and low tolerance scenarios are implemented on the space heating controller to assess the impact of DDSC upon buildings with different thermal capacitances, light-weight and heavy-weight construction. Space heating is provided by an electric heat pump powered from a wind turbine, with a back-up electrical network connection in the event of insufficient wind being available when a demand occurs. Findings highlight that thermal comfort is maintained within an acceptable range while the DDSC controller maintains the demand/supply balance. Whilst it is noted that energy demand increases slightly, as this is mostly supplied from the wind turbine, this is of little significance and hence a reduction in operating costs and carbon emissions is still attained.

The first five years of the EU Impact Assessment system: a risk economics perspective on gaps between rationale and practice

In 2003 the European Commission started using Impact Assessment (IA) as the main empirical basis for its major policy proposals. The aim was to systematically assess ex ante the economic, social and environmental impacts of EU policy proposals. In parallel, research proliferated in search for theoretical grounds for IAs and in an attempt to evaluate empirically the performance of the first sets of IAs produced by the European Commission. This paper combines conceptual and evaluative studies carried out in the first five years of EU IAs. It concludes that the great discrepancy between rationale and practice calls for a different theoretical focus and a higher emphasis on evaluating empirically crucial risk economics aspects of IAs, such as the value of statistical life, price of carbon, the integration of macroeconomic modelling and scenario analysis.