SUPPORTING EFFORTS TOWARDS
ASSESSING REGULATORS’
PERFORMANCE
Filippo Cavassini
Policy Research and Advice Analyst, Regulatory Policy Division
Public Governance and Territorial Development Directorate
G20 Outreach Energy Regulators Dialogue
Budapest, 15 September 2014
Outline
• The OECD Network of Economic
Regulators (NER)
• The Performance Assessment Framework
for Economic Regulators (PAFER)
• Preliminary insights
THE OECD NETWORK OF
ECONOMIC REGULATORS (NER)
A challenging policy environment
Increasing demands
on regulators
- Policy stability
- Risk management
- Competition
- Service quality
- ….
Fewer resources
Greater
impact
The Network of Economic Regulators
More than
70
regulators
across
sectors
Analysis,
principles
and
guidance
OECD
NER
Regular
sharing of
lessons and
experience
OECD
members
and nonmembers
THE PERFORMANCE
ASSESSMENT FRAMEWORK FOR
ECONOMIC REGULATORS
(PAFER)
Why measuring performance?
Better regulatory
decisions
Greater
transparency and
accountability
Stakeholders’
and consumers’
trust and
confidence
But not easy to
do…
The PAFER
TOOLBOX
Analysis
Peers’ good practices
Policy recommendations
Strengthening the regulator’s approach and
methodology to assess its own performance
The PAFER’s tools (I)
Logical framework
- Strategic objectives: objectives
and targets to inform actionable
indicators
- Input: funding and staffing aligned
with objectives and targets
- Process: organisation and
processes supporting performance
- Output and outcome:
performance assessment of
regulator’s impact and use of
performance information
The PAFER’s tools (II)
Principles
- Role clarity
- Preventing undue influence
and maintaining trust
- Decision-making and
governing structure
- Accountability and
transparency
- Engagement
- Funding
- Performance evaluation
The tools in the PAFER’s toolbox (III)
Management drivers
- Institutions
- Organisation
- Monitoring and
evaluation
The PAFER toolbox
Input
Framework for
Regulatory Policy
Evaluation
Best Practice
Principles for the
Governance of
Regulators
- Funding
Process
- Role clarity
Output & Outcome
- Performance evaluation
- Maintaining trust and
preventing undue
influence
- Decision-making and
governing body structure
Institutional,
organisational
and monitoring
drivers (OECD
Regulatory and
Governance
Reviews)
Set
strategic
objectives/
mandate
for
regulatory
policy in a
specific
sector
- Accountability and
transparency
- Engagement
- Budgeting and financial
management
- Strategy, leadership and
co-ordination
- Performance standards
and indicators
- Human resources
management
- Institutional structure
- Performance processes
and reports
- Management systems
and operating processes
- Relations and interfaces
with Government bodies,
regulated entities and
other key stakeholders
- Feedback or outside
evidence on performance
Applying the PAFER
Step 1
Step 2
Step 3
• Detailed questionnaire to collect information on
• Regulator’s strategic objectives and mandate
• Input, process, output and outcome measurement and indicators
• Use of performance evaluation
• Peer-reviewed fact-finding mission
• Key findings and recommendations to be discussed by NER members
On-going review of the Colombian
telecom regulator’s balanced scorecard
OECD
An incremental process
PAFER
applied to
more sectors
and
regulators
Wider body
of lessons
and insights
What makes
an outcomeoriented
regulator
PRELIMINARY INSIGHTS
Ground rules
• No established standard or best practice for
assessing the performance of regulators
• Outcome information is key for tracking
long-term trends and learning
• Issues of attribution and causality need to be
recognised
• Institutions matter for performance –
independence of the regulator and role in
developing and enforcing regulation
Typology of performance data
• Quantitative market data (tracked over time
and against international benchmarks)
• Qualitative market survey data of industry
and customers (including customer
complaints and media)
• Focused market studies - in depth
assessment of identified priorities
• Management data
• Regulatory impact assessment/CBA
THANK YOU!
Filippo Cavassini
Filippo.cavassini@oecd.org