Global trends

Work conducted by the OECD across countries and sectors suggests that how accountability is translated into practice can be closely related to the independence of the regulator and its functions and powers. Moreover, regardless of legal requirements, regulators can develop practices and approaches that best fit their needs and contextual challenges.

Accountability and scope of action: the Product Market Regulation dataset

In 2013, the Product Market Regulation (PMR) database was enriched with indicators on the governance of regulators.¹ Regulators responsible for energy (gas and electricity), telecommunications and transport (rail, airports and ports) have provided information on independence, accountability and scope of action through a survey that tracks the implementation of some of the governance arrangements identified in the Principles, with a focus on de jure/formal arrangements (OECD, 2016). Answers have been used to produce scores for each component that varies from 0 (the most effective governance structure) to 6 (the least effective governance structure). The scores and the underlying data are available on the OECD website.²

A simple correlation of the scores provides some interesting insights on the relationship between some of the Principles. Accountability and independence are positively correlated, suggesting that accountability structures tend to depend to some degree on the formal relationship with the executive.³ More independent regulators will tend to have stronger accountability structures. At the same time, as the scores for some of the sectors of the regulators included in the case studies regulators suggest, the executive tends to maintain a relatively larger control over the regulators that have a comparatively wider scope of functions and powers (Table 1.1).

Table 1.1. Correlating independence, accountability and scope of action

Source: OECD PMR Database,

www.oecd.org/economy/growth/indicatorsofproductmarketregulationhomepage.htm (accessed 24 July 2015).

The PMR survey also shows that regulators perform at least some of their activities with other regulators and/or ministries. This is most common for the review of approval of contract terms between regulated entities, enforce compliance and solve disputes between regulated entities/market actors (Figure 1.2).

Figure 1.2. Regulators’ scope of action

Source: OECD PMR Database,

www.oecd.org/economy/growth/indicatorsofproductmarketregulationhomepage.htm (accessed 24 July 2015).