The electricity sector, with its responsibility to deliver a good for society, is subject to much more intervention and tighter regulation than most other sectors of the economy. Public policy and regulation, however, should be consistent and aligned with the time horizons of the sector, which recovers its investments in terms of decades, not years. Visibility on long-term trends and regulation as well as consistence in policies is therefore crucial.
EURELECTRIC has been running a one year intensive work on the investment climate in the liberalized power sector. And a survey done by the association has revealed that a clear majority of members see regulatory risk as the utmost challenge today. Indeed, the industry is used to cope with risks, and used to hedge economic risks, but regulatory risks and sudden changes can't be hedged by anyone.
EURELECTRIC presented the results of it's investment action plan, recommendations and findings, as well as the full report, on the conference on December 6th, to which high level speakers from industry, as well as the banking and finance sector, and policy makers have already signed up.