Strategic Studies of public policy

Strategic Studies of public policy

The regulatory position in the governance structure of Iran's energy sector

Document Type : Research Paper

Authors
1 Assistant Professor in Energy and Electricity Economics Department,, Niroo Research Institute (NRI)
2 PhD student in International Oil and Gas Contracts Management, of Imam Sadiq University-Researcher of Technology Studies Institute
3 Researcher of Knowledge-based Economy Group, Technology Studies Institute, Tehran, Iran
Abstract
The energy sector is considered one of the most important network industries due to having a network of transmission and distribution in the field of electricity, gas and oil. Since the characteristic of the network leads to natural monopoly, therefore, in most countries, these industries were exclusively managed by the government. After 1980, there was a fundamental change in the management of these industries that they are not monolithically monopolized and are composed of different components, and this led to the change of their governance structure, centered on regulatory institutions in separating policy-making from service provision layers. It provided the purpose of unifying the decision-making system.

Through analytical-descriptive method, this article has focused on deriving a theoretical framework in line with the position of regulatory institutions in the structure of energy governance, as well as examining empirical study in China. Also, another part of the article is dedicated to the analysis of Iran's energy governance structure, focusing on regulatory institutions, through the case study method. The results of this article show that the existence of a gradual approach in China, has been able to make the path of separation of policy making, regulation and service provision duties, and such a separation has occurred gradually, and this has led to the improvement of the governance system in the field of energy in this country. It seems that using such an approach in Iran's energy sector through advisory regulator is an inevitable necessity.
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