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Reforms and Investments

Improving Regulatory Impact Assessment practices of the Portuguese Energy Regulator

Supporting reforms to foster an attractive business environment and increase competitiveness

Funding Programme
Year
  • 2024

Improving Regulatory Impact Assessment (RIA) practices of the Portuguese Energy Regulator (ERSE)      

The project supported Portugal’s independent regulatory authority for energy services (ERSE) to improve the robustness, transparency and sustainability of its regulatory practices by applying regulatory impact assessment (RIA) more consistently and comprehensively to decision making. 

Context

Portugal’s energy sector plays a cross-cutting role in enabling social and economic activities and is central to crisis preparedness and the green transition, with the decarbonisation of the energy sector being one of the primary levers to reduce emissions in Portugal. Investment and market design choices in transmission, distribution and sustainable energy infrastructure will shape the extent to which such outcomes are achieved. RIA provides a structured methodology to compare and assess different regulatory options, thus enabling authorities to address related regulatory decisions under uncertainty.

However, ERSE lacked a standardised RIA methodology, and impact assessments were predominantly focused on economic factors, with environmental and social impacts often not analysed.

In this context, the project aimed to improve ERSE’s regulatory impact assessment practices, by providing a methodology and toolkit to support evidence-based processes aligned with national objectives which consider all relevant economic, environmental and social impacts.

Support delivered

The project implementation period lasted 18 months from September 2024 to end February 2026. As project implementing partner, the OECD delivered a set of outputs and activities to build ERSE’s capacity and capability and enable the effective implementation of RIA:

  • an AS-IS assessment and gap analysis of ERSE’s current RIA practices;
  • a standardised and tailored RIA methodology, and accompanying implementation guidelines;
  • tailored training activities, including a workshop led by the OECD and Florence School of Regulation (EUI) and a practical training workshop to train ERSE practitioners on the developed methodology and implementation. 

Finally, the project also supported ERSE in sharing the project’s learnings with European energy regulators, through a dedicated workshop. 

Results achieved

The project has achieved several important milestones that enable ERSE to implement regulatory impact assessment more consistently and comprehensively across the authority, thus contributing to long-term regulatory decision-making in the Portuguese energy sector:

  • First, the project delivered an RIA methodology, tailored to ERSE’s context as national regulatory authority for the energy sector which did not previously exist at ERSE. The methodology contains the overarching RIA process and toolkit to allow systematic RIA implementation. It is informed by the OECD’s review of international good practice as well as the analysis of ERSE’s current practices and institutional governance. This methodology has been published for public consultation by ERSE in February 2026 (Consulta Pública 139).
  • Second, the project built ERSE’s capability (knowledge and skills) to directly implement, lead and maintain the use of the new RIA methodology by delivering detailed practical guidance (Implementation Guidelines) and bespoke trainings to ERSE practitioners. The project’s activities gained the support of ERSE’s leadership and staff, and the OECD’s recommendations on enabling RIA through continued good governance and capacity-building, including the phased implementation of RIA, were endorsed.    

More about the project

You can read the documents related to the project here: