Jan. 22, 2015

Sectorial Analysis

Be regulator, is it a profession? Appointment of Yann Padova to the "Commission de Régulation de l'Énergie - CRE (French Energy Regulatory Commission)

A simple question:  be regulator, is it a profession?

As soon as one asks the question, it should be down. Indeed, the time has passed when the regulator was a natural person. Today, in most cases, the regulator takes the form of a Regulatory Authority, that is to say an entity with or without legal personality, incorporated in the State or professional.

Individuals appear as a member of the Authority, even if it is true that the President of the Regulatory Authority often has a very importan role!footnote-17.

The choice of Commissioners is crucial to the independence and effectiveness of the regulatory authority. It is appropriate that the person has "authority" over the area, must be respected and participates effectively in the collective action of the College.

Let us try to recall the two sets of criteria to determine how one thinks the "good regulator" before taking such case the appointment of Mr. Yann Padova as a new member of the College of the Commission de Régulation de l'Énergie (French Energy Regulatory Commission).

For this, there are two possibilities, which can be cumulative.

Either one considers that the "good regulator"!footnote-18 is one who knows the industry, products and services offered on this sector, operators working there. It is appropriate that industry itself expresses the "recognition" to give him credit.

The right person will be the one who knows the sector and whom the sector knows . With a mirror effect, the banker will become the banking supervisor, the financial become the financial regulator, the engineer will become the telecommunications regulator, etc. Studies in the field of finance, engineering or economics are required. He will be immersed in the sector.

The advantage of this solution is the technical relevance of the action of the regulator and the satisfaction of the sector. The relevance of this conception was observed in the appointment of the new US central banker, Janet Yellen.

But the disadvantage of this solution is the risk of regulatory capture by the industry.

Conversely and in a more British design, the idea is that being regulator is a full-time job, regardless of the object on which the regulator performs his art.

Indeed, it is difficult to regulate ... You have to know the political world, keeping your distance. You have to know the functioning of the judicial world, because on one hand the regulator is often judge himself, and secondly you must come to defend your decisions before the court in which an action hits. You have to listen but it is the operators who provide all necessary technical information. It must first be opened on the international market and to network with counterparts.

Thus, be regulator would be a profession. Therefore, one can not be improvised regulator. It is necessary to have studied political science and law. It is appropriate have had positions in the administration, in the courts, have attended nearly politics. Once one has understood how the economic regulator system works, no matter whether one is regulator of the bank, the Internet, personal data, energy, insurance or electronic communications . The job is a bit always the same.


Now consider the case.

Yann Padova studied at Sciences Po, has a degree in history and a public law master .

Il a été administrateur de l'Assemblée Nationale.

He worked at the Assemblée Nationale (French National Assembly).

He was Secretary General of the CNIL, the regulatory body of personal data, before being a lawyer specializing in telecommunications .

He has been appointed by the President of the Assemblée Nationale  as the new Commissioner in the College of the Commission de Régulation de l'Énergie (French Energy Regulatory Commission).



It is easy to measure how set of criteria that appointment, otherwise very deserved, implicitly refers.






Comme l'on évoque le "bon juge" ...

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