Regulator for energy, water services to be set up

Parliament this evening initiated the discussion on the legislation by which the regulator for energy and water services will be set up.

The Regulator will effectively absorb the work related to energy and water services currently handled by the Malta Resources Authority.

The MRA was originally set up to draft policies and regulate energy, water, mineral resources and climate change and draft policy.

“The wide range of functions made it difficult for the authority to properly focus while there was no separation between the policy makers – the government – and the regulator, which was the MRA’s role,” Energy Minister Konrad Mizzi said.

The setting up of the Regulator will lead to the gradual phasing out of the MRA, until the authority for resources and the environment is set up. This authority will be under the responsibility of the Environment Minister.

The principle aim of the Regulator, Mizzi said, was to ensure that consumers of water and energy services benefit from good prices and services.

The draft law and draft transposition of the law have been approved by the European Commission.

In reply to a number of questions raised by shadow energy minister Marthese Portelli, Mizzi said there will be no repetition of roles between the Regulator and the MRA, since the MRA will be phased out. The minister said that the composition of the Regulator’s board was also in line with EU regulations.

Portelli welcomed the setting up of the Regulator and called for the necessary legal framework that would ensure the Regulator’s role is impartial and independent.

According to the draft legislation, the ‘Regulator for Energy and Water Services’ shall consist of a chairman and a board between four to six members. The board members would be appointed by the minister for a term of five years and not more than seven years.

Labour MP Charles Mangion said that the role of the Regulator was “an important part in the implementation of government’s energy plan”. During his intervention, Mangion commented that PN MP Tonio Fenech had accompanied PN leader Simon Busuttil to China and will b holding a meeting with Shanghai Electric Power.

The role of the Regulator will be to regulate, monitor and keep under review all practices, operations and activities relating to energy and water services and resources; to grant any authorisation for the carrying out of any operation or activity relating to energy and water services and resources; to regulate and secure interconnectivity for the production, transmission and distribution of the services.

The Regulator must also promote fair competition, establish minimum quality and security standards, secure and regulate the development and maintenance of efficient systems and regulate the price structure, among others.

Crucially, the Regulator must “promote the interests of consumers and other users in Malta, particularly vulnerable consumers, especially in respect of the prices charged for, and the quality and variety of the services and, or products”.