New Perspectives for the Regulation of the Electricity Sector

Abstract

This study presents the development of energy regulation in Portugal, in particular, progress in the electricity sector since the beginning of the century when the electricity sector was still at the start of the process of liberalization, accompanied by new agents entering with private equity, along its value chain. This pattern, common to most European countries, was largely the result of the foundation of the Internal Energy Market. This process was designed to allow consumers to benefit from a more competitive market and from a better use of Europe’s energy resources. The context of the electricity sector has evolved significantly ever since. The technological advances, the needs resulting from climate change and the increased scrutiny of regulators’ activities, in particular by consumers, are not only drastic changes, but also main drivers of the new regulatory context. By presenting the main technological and organizational changes that have taken place in recent years, this study also highlights many challenges for the regulation of the electricity sector in Portugal in the European context.