Europe and Eurasia: SEE Market Monitoring

As they work to meet European Union directives, the countries of Southeast Europe have taken numerous steps forward in integrating electricity and natural gas markets into EU markets. In support of efforts to improve market monitoring and data transparency, NARUC with the support of the United States Agency for International Development (USAID) launched the Southeast Europe Electricity Market Monitoring Project in 2006.

In collaboration with European regulators, the project aimed to develop an approach to market monitoring for Southeast Europe and test its implementation, all the while working toward full compliance with EU directives. The project included representatives from Albania, Bosnia & Herzegovina, Bulgaria, Croatia, Macedonia, Montenegro, Romania, Serbia, and Kosovo, regulators from North America and Europe, officials from the US market monitoring firm Potomac Economics, and others.

The project sought to develop performance indices and screens that identify anticompetitive market conduct, market flaws and market power. Specifically, the project aimed to design data collection and analytical elements for market monitoring, conduct a pilot test of data collection and market analysis, and draw lessons from the experience and make recommendations on the implementation of a market monitoring function before the EU Energy Community market for non-residential customers opened in 2008.

The project produced a transition plan that built on the initial pilot project and as envisioned would help to facilitate a path toward a final market monitoring design and function.