The Regulatory Authority for Energy, Waste and Water (RAAEY) was established as an independent regulatory authority, which was established by Law 2773/1999, in order to be aligned with Directives 2003/54/EC and 2003/55/EC on electricity and natural gas, having the supervision of the domestic energy market as its main responsibility, while making recommendations to the competent State bodies and taking measures to achieve the goal of liberalizing the electricity and natural gas markets.

RAAEY ‘s role as an energy regulator has been upgraded since 2011, with the increase and strengthening of its decisive powers on regulating the electricity and natural gas markets. These powers were assigned to RAAEY according to the Third European Energy Package, which renders the regulatory authorities as “guarantors” of the proper functioning of energy markets. According to article 4 par. 4 of Law 4001/2011 (Government Gazette A’ 179/22.08.2011), “[RAAEY] is the national regulatory authority in matters of electricity and natural gas, within the framework of Directives 2009/ 72/EC and 2009/73/EC”.

Subsequently, by virtue of Law 5037/2023, the Authority was renamed as Regulatory Authority for Energy, Waste and Water (RAAEY) and its scope is expanded with responsibilities over Water services and Urban Waste management. Specifically, the Authority’s responsibilities are defined in the amended article 4 of Law 4001/2011: ‘’The control, regulation and supervision of the energy market, as well as the control, regulation and supervision of subjects related to the provision of water services and urban waste management, without prejudice to the competences of the Minister of Environment and Energy, are exercised by the Regulatory Authority of Energy, Waste and Water, which is the national regulatory authority in matters of electricity and natural gas, water services and urban waste management, within the meaning of Directives (EU) 2019/944 and 2009/73/EC and Laws 3199 /2003 (A’ 280) and 4819/2021 (A’ 129).’’

It is noted that the operation of the Waste and Water Departments begins with the appointment of its Members and the new responsibilities are assumed after the approval of the new Organization and the Regulation of Administrative Operation and Management of the Authority[1], as well as with the completion of the necessary hiring procedures, which is determined by a decision of the Minister of Environment and Energy, published in the Government Gazette, following the opinion of the Authority’s Board.

In accordance with the provisions of Law 4001/2011, RAAEY is legally independent, while possessing administrative and financial independence, and is subject only to parliamentary and judicial control (Article 5 and Article 6 par. 1).

The main responsibilities of RAAEY, as stated in Chapter C of Part A of Law 4001/2011, as amended by Law 5037/2023, are summarized below.

Responsibilities of RAAEY

Α. Energy Sector

• Monitoring and supervision of energy markets

RAAEY monitors and supervises the operation of the domestic energy markets, drafts studies, prepares, publishes and submits reports, makes recommendations, decides or recommends to the competent State bodies the application of necessary measures, including the issuance of regulatory and individual acts, in particular for compliance with competition rules and the regulatory obligations set by Law 4001/2011 (consumer protection, the fulfillment of public utility service obligations, environmental protection, security of energy supply and the development of the internal energy market of the European Union).

• Consumer Protection

RAAEY supervises the implementation of consumer protection measures, as specified in Part B of Law 4001/2011. With regard to complaints submitted by consumers against energy companies, these fall under the responsibility of the Authority only if there is a regulatory supervision issue provided for by the Energy Law and are specialized in the regulatory decisions issued by RAAEY, but not issues of purely civil or commercial disputes.

• Monitoring the security of the country’s energy supply

RAAEY monitors the security of energy supply, and in particular the balance of supply and demand in the Greek energy market, the level of projected future demand, the projected additional capacity for production, transmission and distribution of electricity and natural gas that is in the planning phase or under construction, the quality and level of maintenance and reliability of the Transmission Systems and Distribution Networks, the implementation of measures to cover peak demand, as well as the conditions of the energy market in relation to the possibility of developing new production capacity. It also monitors the implementation of measures taken in the event of a crisis in the energy market. Specifically, RAAEY has been designated as the Competent Authority for ensuring the implementation of measures set out in the European Security of Supply Regulation 2017/1938 for natural gas and Regulation (EE) 2019/941 for electricity.

• Granting of licenses

RAAEY decides on the granting, modification, and revocation of licenses for the exercise of energy activities in accordance with the specific provisions of the Energy Law. This process is subject to compliance with the principles of transparency and equal treatment, and it takes into account the specific characteristics of the applicants, consumer protection, environmental protection, and ensuring conditions of healthy competition. RAAEY shall monitor and control the manner in which the rights conferred by these licenses are exercised, as well as ensure compliance with the obligations of the license holders.

• Monitoring of Transmission System Operators

RAAEY shall monitor compliance with the obligations on equal third-party access for users to the transmission system and to the information and data of Transmission and Distribution Operators of electricity and gas. Additionally, RAAEY:

• Decides on the certification of natural gas and electricity undertakings, in accordance with the criteria of the European Directives and the Energy Law, to designate these undertakings as Operators and monitor their ongoing compliance.
• Approves the Development Programmes of the Operators, examining whether they (a) cover all the needs identified, and (b) are in line with the corresponding inter-EU programmes.
• Decides on the methodology for calculating the tariffs for non-competitive activities, as well as the level of such tariffs, ensuring they are non-discriminatory and reflect the cost of the services provided.
• Examines requests for exemption of part or all of the capacity of the natural gas system and interconnections with electricity transmission systems of other countries from the obligation to provide third-party access or from the obligation of ownership unbundling.
• Establishes, monitors, and supervises the implementation of the rules on access to interconnections, including the relevant tariffs and the methodology for their calculation, the capacity allocation and release, and congestion management mechanisms.
• Adoption of Regulatory Measures for the Proper Functioning of Energy Markets

RAAEY may impose on undertakings carrying out energy activities measures and conditions, proportionate to the intended result, which are deemed necessary to ensure the application of the provisions of the Energy Law and the existence of conditions of healthy competition and proper functioning of the market.

Β. Waste Sector

• Advisory/Recommending Powers
• RAAEY recommends the method of costing and pricing for waste management, makes proposals for the rationalization of charges, proposes a package of measures to ensure the operational functioning of the Solid Waste Management Entities (SWMEs), and provides an opinion on the adoption of guidelines and measures for the coordinated management of municipal waste.
• Monitoring Responsibilities
• RAAEY monitors the efficient and economically viable management of municipal waste by the SWMEs, particularly specific indicators of municipal waste management as per Annex I of Law No. 5037/20
• Decision-Making Powers
• RAAEY decides on the minimum quality levels for waste management services, provides guidelines and instructions on the utilization of energy from waste, checks the cost-effectiveness of waste management, posts the relevant cost data on its website, and decides on the management competence of the waste management agencies.
• Audit/Investigative Powers

RAAEY reviews complaints, determines the methodology of fines, imposes fines, makes recommendations, and controls the obligation to pay landfill fees by waste disposal operators

C. Water Sector

• Advisory/Recommending Powers

RAAEY gives an opinion on the method of costing and pricing of water services. Furthermore, it recommends the adoption of measures and procedures for water supply, makes proposals to ensure the operational functioning of all water service providers, as well as the reorganization of water providers.

• Monitoring Responsibilities

RAAEY supervises and monitors the economic and physical scope of water service provision, particularly specific water service monitoring indicators as per Annex III of Law No. 5037/2023.

• Decision-Making Powers

RAAEY certifies water service providers, issues draft model water supply, sewerage, and irrigation regulations, approves water service tariffs (for the companies EYDAP S.A. and EYATH S.A.), decides on the management capacity of water service providers, and approves the Water Master Plans (WMP) and the planning report for the development of water service infrastructure.

• Audit/Enforcement Responsibilities

RAAEY reviews complaints, determines the methodology for fines, imposes fines, and makes recommendations.

In order to effectively exercise its responsibilities and successfully perform its regulatory work, the provisions of Law 4001/2011 provide RAAEY with certain essential tools, such as the ability to collect all types of data, conduct investigations, examine complaints, and consequently impose penalties and take interim measures.

[1] The new Organization and the Authority’s Regulation of Administrative Operation and Management have already been approved (see Official Gazette B΄ 5408/2023 and Official Gazette B΄ 1867/2024, respectively).