National independent regulatory authorities as a case for EU rules promotion in the southern Mediterranean region

Rules harmonization is one of the features characterizing regional integration processes. We analyse such dynamics with regard to the Euro-Mediterranean area and the energy sector, focusing on the implementation of one of the most relevant reforms within the energy industry as promoted by the EU: the institution of National Independent Regulatory Authorities. An independent regulatory authority is the necessary condition for credibility of commitments to regulate natural monopolies. Independence, thus, improves the regulators' ability to make long-term commitments to regulatory decisions and contain risks of administrative expropriation. We thus examine both features of existing regulatory agencies of southern Mediterranean countries’ regulators, stressing three dimension of independence, and the perception of EU rules promotion by southern Mediterranean regulators. Findings show low degree of agencies’ independence but potentials for a more incisive action of the EU as rules promoter and rules harmonization.