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Driving Performance of Mexico's Energy Regulators

image of Driving Performance of Mexico's Energy Regulators

As “market referees”, regulators contribute to the delivery of essential public utilities. The internal and external governance of regulatory agencies are essential to determining how regulators and the sectors they oversee perform. The OECD has developed an innovative framework that looks at the institutions, processes and practices that can enhance regulators’ performance. In this report, the framework is applied to the external governance of Mexico’s energy sector and its three regulatory bodies, the Agency for Safety, Energy and Environment (ASEA), the National Hydrocarbons Commissions (CNH) and the Energy Regulatory Commission (CRE), following a structural reform of the sector and its regulatory institutions. The review offers insights into the progress and challenges in the implementation of the reform, highlighting the importance of structured co-ordination and accountability mechanisms based on a common strategic agenda, alignment of processes for good regulatory outcomes as well as sufficient operational flexibility. The report is complemented by forthcoming reviews of the internal governance arrangements of the three regulatory agencies, constituting a comprehensive body of work on the regulatory governance of Mexico’s energy sector.

 

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Foreword and Acknowledgements

As “market referees”, regulators contribute to the delivery of essential public utilities. To be successful, regulators need to be constantly alert, informed by live data, checking sectoral trends and assessing the impact of their decisions. The performance of regulators is also largely determined by their internal governance ? their organisational structures, behaviour, accountability, business processes, reporting and performance management ? and external governance ? roles, relationships and distribution of powers and responsibilities with other government and non-government stakeholders. To help regulators in their quest for better performance assessment, the OECD has developed an innovative framework that looks at the internal and external institutions, processes and practices that can enhance regulators’ performance.

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