When the going gets tough, the tough get going: How economic regulators bolster the resilience of network industries in response to the COVID-19 crisis

 Ensuring the continuity of service

The delivery of critical services to support the economy and relief efforts have been prioritised by regulators across the world. In the energy sector, Portugal’s Energy Services Regulatory Authority (ERSE) has required network operators to prioritise the supply of energy to priority installations, such as hospitals. In the transport sector, rail regulators have protected essential supply chains by implementing priority use of the rail network. This has been the case in France, where the transport regulator, Autorité de Régulation des Transports (ART), helped ensure that traffic give priority to freight trains to favour the maintenance of supply chains of critical sectors (such as agriculture, industry, health). Similarly, in Greece, the Regulatory Authority for Railways (RAS) has taken measures such as proposing an extension of the validity of certificates and licenses to keep freight trains in operation. In France, while the drop in passenger traffic has made the prioritisation of freight easier, the regulator continues to monitor path allocation and operational traffic management to ensure that there is no discrimination in network access.

Prioritising continuity of service has in certain cases led to allowing activities that may have been considered anti-competitive in normal times, taking into account the change in circumstances in the market and the immediate social and economic needs. For example, the Australian Competition and Consumer Commission (ACCC) issued a suite of interim authorisations to address problems faced by industry participants. In doing so, the regulator weighed the public benefits offered by the authorisation against the possibility that the activity would alter the competitive dynamics of the market in the future. In Spain, the National Commission of Markets and Competition (CNMC) acknowledged in a press release that the crisis may justify certain forms of company co-operation if it is necessary to achieve, for example, improvements in the supply of essential products (Comisión Nacional de los Mercados y la Competencia, 2020[6]). Similarly, the British Office of Rail and Road (ORR) took a more flexible approach to some instances of co-operation between companies if it is deemed necessary and appropriate to improve delivery of essential products or maintain services for the transport of critical workers.

Regulators have also responded to significant changes in patterns of demand by involving customers in demand management. This has been a particularly salient issue in the e-communications sector, where regulators have provided important information and helpful tips for customers to effectively manage their increased demand for network connectivity. Ensuring stable access to the network is especially important to enable mass teleworking, distance education and e-health services during the pandemic. The Mexican e-communications regulator, the Federal Institute of Communications (IFT), issued recommendations to consumers for behaviour adjustments to avoid saturating the network. Similarly, the New Zealand Commerce Commission released tips to improve broadband performance.

Protecting essential workers to ensure continuity of services has also emerged as a priority for regulators across jurisdictions. Portugal’s Water and Waste Services Regulation Authority (ERSAR) issued recommendations for operators to protect workers involved in waste collection and treatment, in collaboration with the Portuguese Environment Agency. The UK’s Office of Gas and Electricity Markets (Ofgem) issued guidance to suppliers, including information on conditions for home visits. The regulator stated its expectation that essential home visits would be maintained to ensure customers have services and the energy supply is safe, clarifying that it understands suppliers might deprioritise other visits during the pandemic. On the other hand, many inspection and enforcement activities have been suspended, described in more depth in the section on “Implementing regulatory easements”.

 Supporting vulnerable customers

Consumer protection and the implementation of measures designed to support vulnerable customers is an important function of many sector regulators. As unemployment has surged across OECD economies and many businesses have been forced to close temporarily, capacity to pay for services has been placed under stress. In this context, many regulators have taken actions to prohibit disconnections of service or offer assistance to consumers experiencing financial difficulties. Some regulators have restricted disconnections outright. The Australian Energy Regulator published a statement of expectations for energy providers, which included an expectation that they would not disconnect residential, small or large business customers without their consent before the end of July 2020. It asks providers to “[b]e prepared to modify existing payment plans if a customer’s changed circumstances make this necessary”. Similarly, France’s Commission de regulation de l’énergie (CRE) extended the ‘winter truce’ by two months to the end of May 2020 during which time suppliers cannot disconnect households from electricity or natural gas provision. Others have emphasised that operators should continue to apply reduced tariffs for consumers with financial difficulties as worsening economic conditions may cause this group of consumers to grow. For example, the Portuguese water regulator, ERSAR, stressed in a FAQ available to operators that operators should continue to apply eligibility criteria for reduced tariffs to consumers in financial difficulty.

In addition to action on disconnections, regulators are putting into place requirements to alleviate the burden of debt on consumers struggling to pay their bills. Portugal’s ERSE issued extraordinary measures to help consumers in the energy sector. The ERSE measures extend the 20-day prior notice period before providers can disconnect customers by an additional 30 days, effectively suspending disconnections during the crisis period (until 30 June 2020). The measures also require suppliers to allow consumers to pay back debt accumulated during this period in instalments of up to 12 months, with no interest. ERSE also requires that network operators put in place a payment plan for suppliers to pay the network charges for those consumers, also with no interest.

Regulators are also supporting consumers by helping them find accurate information about the crisis and available support, contributing to the fight against “fake news” and encouraging the uptake of appropriate advice. The UK’s Office of Communications (Ofcom), launched a communications campaign to counter misinformation about connections between coronavirus and 5G networks. The Mexican e-communications regulator IFT co-ordinated with the federal government and industry actors to ensure that consumers would receive free text messages with announcements and information about the crisis. In addition, IFT has compiled offers of support for consumers from service providers on its website, ranging from free access to the government coronavirus site and the application of more favourable rates and conditions of service for customers. The site organises offers for customers by service providers, allowing customers to easily identify and compare relevant offers. The New Zealand Commerce Commission compiled an information sheet for consumers that includes information on locating financial support for e-communications services and instructions on resolving disputes with broadband providers.

 Maintaining financial security of operators

Governments across the world are implementing relief packages to counter the economic effects of the pandemic, including policies to increase liquidity and curb bankruptcy risk, such as deferral of tax, financial support for debt repayment, or temporary support to wage payments (OECD, 2020[7]). In some cases, governments have provided state aid to support specific firms in distress. Regulators are acting as part of this whole-of-government effort in their areas of competence, namely with regard to monitoring and maintaining the financial solvency of operators in network sectors. Regulators have put in place a range of measures to help industry actors to cover financial shortages and recover from economic loss. In some cases, this has included imposing limits on normal costs or penalties. For example, to protect particularly affected suppliers from default, Portugal’s ERSE has imposed a moratorium on the payment of access to the network for suppliers with invoices falling more than 40%. In the Italian electricity sector, the Regulatory Authority for Energy, Networks and Environment (ARERA) has added a cap and floor to costs for dispatching units that do not manage to predict their consumption. French energy regulator CRE has taken measures to support alternative suppliers that had purchased electricity at a price agreed in advance, and now find themselves having to sell on the market at a lower price, placing them in a situation of financial vulnerability. In Brazil, the government implemented measures to ensure electricity distribution companies can recover costs related to additional loans they may have to take out during the pandemic. When implementing relief measures, thereby limiting the risks for operators, regulators and policy makers need to assess the benefits of all options against the potential costs for consumers in terms of affordability and efficiency of services, and make sure a level playing field is maintained.

Tariff adjustments may also help operators recoup unexpected costs linked to the pandemic. Changes in wholesale prices are prompting the Lithuanian National Energy Regulatory Council (VERT) to review household tariffs. The tariff review may also include consideration of costs to industry from deferrals or payments in instalments from consumers, interest costs of loans and costs of protection measures from companies.

Finally, in some jurisdictions, regulators are entrusted with overseeing emergency funds designed to support operators. For example, Italy’s ARERA sets the rules for how emergency funds for the energy sector are disbursed through specific funds.

 Implementing regulatory easements

Many economic regulators have introduced some form of regulatory easements, ranging from explicit exemptions from usual regulatory obligations to greater administrative flexibility:

• Across the board, regulators are demonstrating administrative flexibility, extending or suspending deadlines for various processes. New Zealand’s Commerce Commission has extended deadlines on a range of regulatory reporting processes. Greece’s rail regulator (RAS) has suspended deadlines of administrative procedures carried out with operators. Brazil’s ANTT has given additional time for regulated companies in the rail, passenger transportation and road freight sectors to comply with contract obligations. In Australia, the ACCC will continue to consider proposed mergers but recognises timelines for some reviews/applications (including those with statutory timeframes) may need to be extended if there are challenges in conducting and completing the necessary inquiries with merger parties and market participants due to COVID-19.

• In several cases, regulators have suspended some performance targets and incentive regimes. Not only do the reporting processes often require significant resources for operators, many of the regimes no longer make sense in sectors such as transport where the drop in demand has been dramatic. In France the transport regulator (ART) accepted the suspension of the performance regime at the request of industry to prevent the payment of penalties for the cancellation of train paths. Germany’s transport regulator and the UK’s Office of Road and Rail (ORR) have taken similar measures.

• Regulatory exemptions have been introduced in several sectors. In the transport sector, the Canadian Transportation Agency (CTA) provided temporary adjustments to the airline’s requirement to pay compensation to customers for flight disruptions within their control and to allow them to nimbly adjust operations as the situation evolved and focus imperatives like repatriating citizens stranded abroad; Germany’s transport regulator has waived ex ante regulation which required any new terms and conditions to be reviewed by the regulator.

• With respect to enforcement, many regulators have suspended, deferred or minimised the use of inspections or adjusted usual practices due to the difficulty in both carrying out these activities in light of movement restrictions and social distancing requirements, as well as to reduce the burden on operators. In some countries, inspectors have needed to be officially recognised as essential workers in order to be authorised to continue working. Lithuania’s VERT has cancelled all scheduled and unscheduled inspections. Australian regulator ACCC will conduct those compulsory examinations that it deems necessary by phone or video conference, and will take into account the burden when making decisions about the scope and timing of statutory notices for the production of information and documents. Canada’s energy regulator (CER) is deferring all low-risk screening activities, while Greece’s RAS is suspending many of its supervisory activities.

• Some customer support and dispute resolution processes have been put on hold. Canada’s CTA has put a stop/pause on all its mediation, adjudication and facilitation processes. Brazil’s ANTT has stopped any ongoing cases for fining companies. Other regulators have chosen to continue such processes but have switched to remote forms of working to respect social distancing requirements. In Peru, the e-communications regulator (OSIPTEL) has suspended face-to-face customer support services but is maintaining its services through call centres and social media. In Portugal, the energy regulator (ERSE) has continued to provide phone support to consumers, with calls forwarded directly to staff from the responsible team who are working from home.

• Some regulators have chosen to delay the introduction of new regulations or specific provisions therein. Canada’s CTA decided not to delay the introduction of new transportation regulations on accessibility, but informed operators that it may consider requests for reasonably short delays of the effective date for specific provisions if companies can demonstrate significant investments of time and resources that would be required to comply.

The government rather than regulator may issue directives to increase flexibility for regulated entities. For example, in France, governmental measures announced through an ordinance on 25 March suspended all ongoing procedures and postponed administrative deadlines for the transport sector (Légifrance, 2020[8]). In some cases, government directives nevertheless leave room for a degree of discretion by regulators for independent and technical decision-making. For example in Spain, the government also suspended all administrative procedures but allowed public bodies to act in case of public interest issues. The Spanish regulator CNMC took advantage of this leeway to continue working on issues of access to transport infrastructure, which it regarded as urgent.

In contrast to the broader trend for regulatory easements, in some cases regulators have fast-tracked the introduction of new regulation or increased demands on operators in areas such as service quality. In Greece, e-communications regulator, the Hellenic Post and Telecommunications Commission (EETT), is prioritising measures that promote the provision and quality of services and accelerate the implementation by operators of the guidelines on open internet regulation. This in large part reflects sectoral differences in the effects of the pandemic.

 Adjusting practice through a “pragmatic approach” vs. through emergency regulation

Regulators are taking different approaches to regulatory easements. In some cases, regulators have issued emergency regulations or developed specific guidance on how operators should proceed. Portugal’s water regulator (ERSAR) has introduced flexibility for operators around quality control procedures for water testing and provided detailed requirements on how this should be carried out. ERSE, Portugal’s energy regulator, issued a new regulation to extend regulatory deadlines and oblige network operators and suppliers to keep the regulator informed of their contingency plans. A second regulation was issued to reinforce the initial measures and extend the application of the regulation until 30 June 2020.

Other regulators have informed regulated industry that regulatory requirements remain in place but that they will be taking a pragmatic approach to compliance. New Zealand’s Commerce Commission has stated that it will be pragmatic in cases where companies can demonstrate that any compliance issues have arisen as a consequence of prioritising efforts to protect customers, security of supply and safety or as a consequence of factors entirely outside of the company’s control. It has also requested that regulated entities inform the regulator of any breaches. The UK’s Ofgem is taking a similar approach and has published a framework on regulatory flexibility for its wholesale energy and retail suppliers that outlines expectations on networks/suppliers for what is high priority now and must be delivered, and what can be deprioritised if necessary.

In general, relaxing rules requires a degree of trust that operators will not abuse the situation. Some regulators have warned industry that leniency could stop immediately if there is evidence that they are taking advantage of the situation for commercial gain. Taking a pragmatic approach rather than issuing new regulation to define expectations arguably requires even stronger relations and higher levels of trust between the regulator and the regulated industry.

The choice of approach also depends on the degree of flexibility within the existing legislative or regulatory framework, which gives the regulator more or less room for manoeuvre in its ability to adapt regulatory practices. A number of UK regulators (ORR, Ofgem, Ofcom) have been able to adapt regulatory practices without issuing new regulations. Other regulators without this flexibility have had to use emergency regulation to make changes. Whatever the approach to making regulatory easements, effective and often intensive communication with stakeholders has been needed.

 Collecting data on sector performance

Decisions around data collection represent a particular challenge for regulators. While data reporting can be resource intensive for operators, regulators need to monitor developments in the markets they oversee more than ever during this time of crisis. Data collected by regulators is frequently a vital input into decision-making, both for the regulator and the executive.

Regulators have taken different positions on this issue. Several regulators have suspended routine data reporting requests. The Italian energy and environment regulator (ARERA) has stopped requests for data and is performing ex ante assessments based on data that it already holds. Conversely, some regulators are putting increased focus on data reporting for market monitoring purposes, but are often being more flexible on how regulated entities can provide the information (e.g. by phone, email…) and on the timelines for submitting data. Some regulators, such as the UK’s Ofgem, have balanced new requests for information with more flexibility in timelines and deprioritising other data requests so as not to increase the overall burden.

 Adapting stakeholder engagement and public consultations

Many public consultations have been deferred or put on hold, recognising the limited ability of stakeholders to take part and engage in regulatory policy debate. Sometimes regulators have taken a risk-based approach to deciding which consultations can be delayed or postponed, and are continuing with consultations that they consider time-critical or a particular priority (e.g. Ofgem). When regulators are continuing with public consultations, they are being organised remotely. Lithuania’s VERT, for example, is proceeding with all scheduled public consultations remotely.

By contrast, in some cases additional, often expedited, consultations are taking place with stakeholders on regulators’ COVID-related measures. For example, Lithuania’s VERT is running a public consultation on amendments to regulation that would see the costs arising from the pandemic being taken into account in regulated prices. The United Kingdom’s Financial Conduct Authority ran a 72-hour consultation period (covering a weekend) in relation to measures aimed at easing financial burden for retail lending consumers (FCA, 2020[9]). Here regulators must consider the trade-off between the speed of decision-making required and the need for consultation with stakeholders. In general, the nature of consultation on emergency regulation tends to be more frequent but informal compared to stakeholder engagement under normal conditions. The United Kingdom’s Ofcom has held more roundtable meetings between the regulator, government and industry in the crisis period than in the preceding six months.

 Defining the time-bound nature of easements or adjustments

Just as regulators must decide how long to keep in place extraordinary measures to ensure the functioning of markets, they are also thinking about how long adjustments to regulatory practices should last. Some adjustments have been announced with clear end-dates, which can be extended depending on the evolution of the situation. Many others do not specify a time period.

Regulators are taking into account several considerations. One consideration is how long adjustments to regulatory practices can be continued without impeding the ability of the regulator to carry out its core functions and meet its objectives, or without distorting markets in the case of regulatory exemptions. Australian regulator ACCC has stressed the time-bound nature of the measures it is taking in response to COVID-19, stating that it wants to ensure any changes to the competitive landscape now are temporary. Restarting public consultation processes will need to take into account when stakeholders will have the capacity to engage. Another consideration is the workload of the regulator. Regulators that have paused dispute resolution processes, for example, will be faced with the task of catching up with the backlog of consumer complaints and ongoing cases. The longer these processes are on hold, the greater the task for the regulator to catch up. For dispute resolution processes in particular, there is also an issue of fairness: how long is it reasonable to expect customers or market actors to wait for a resolution of their case? This consideration is key for continued trust in the regulatory system and its decisions.

These questions of how and when to start unwinding adjustments to regulatory practices will require effective communication with stakeholders and many of those conversations have already begun.

 Making decisions at a time of crisis: criteria and process

Given the speed at which the crisis and its effects have unrolled, regulators have had to balance the need for evidence-based and robust decision-making with the required speed of decisions. Deciding the degree of flexibility to grant operators requires careful consideration. Reducing the regulatory burden on industry so that essential services continue to be delivered needs to be balanced with other objectives, such as customer protection or competition. Regulators have taken different approaches when making these decisions, often in a context of considerable pressure from industry for sweeping exemptions. To strike the appropriate balance, a number of regulators have established criteria when deciding the degree of flexibility to grant operators.

One approach, followed by Canadian transport regulator CTA, is to be as focused and targeted as possible in its exemptions, based on an analysis of the precise needs of the airline companies. In this case, the regulator still requires a rationale and supporting data for relaxing or suspending regulations, although it may accept lower levels of evidence than it would in normal circumstances.

Sometimes the degree of flexibility is a function of where a regulator has decided to set a limit on which activities could be scaled back. The United Kingdom’s ORR chose to be more flexible in its enforcement of certain regulatory requirements but drew the line at passenger protection, ensuring that regulation concerning vulnerable groups, the provision of information to customers and compensation remained in force.

In other cases, criteria include a time component. The United Kingdom’s energy regulator Ofgem has delayed or postponed a range of activities that it considers less time-critical in the short-term to consumer protection and security of supply. The regulator is also prioritising the delivery of its statutory obligations. Canada’s energy regulator (CER) has taken measures that advance two key principles: adjustments to programme activities which will reduce administrative burden on regulated entities and impacted persons in the short term (90 days) and adjustments to programme plans and processes in order to contribute to Canada’s economic recovery and the energy sector’s global competitiveness in the medium term (3-6 months).

With regard to the governance of decision-making by regulatory authorities, agencies have continued to issue decisions via statutory mechanisms such as the board of directors or equivalent. In some cases, like France’s ART, the regulator is allowed to transfer certain competences from the internal deliberative bodies to the executive positions by express government authorisation.

Across jurisdictions, regulators have also created specific internal COVID-19 task forces to support evidence-based decision-making in the on-going emergency context. This has been the case, for example, in Brazil’s Agência Nacional de Transportes Terrestres (ANTT) and Finland’s Transport and Communications Agency (Traficom), allowing for a more focused approach to the COVID-19 measures, whilst allowing other internal resource to deal with other more business-as-usual matters. Similarly, multi-sector regulators, like Italy’s ARERA, have established internal task forces to gain deeper understanding of COVID-19 implications for each regulated sector, sometimes with board members or senior decision-makers substantially involved in leading these.

 Using digital tools to stay effective

By April 2019, most countries had implemented some form of movement restriction or social distancing measures (WHO, 2020[12]). Many workplaces – including those of regulators – have transitioned to working remotely, whether fully or in part. In some cases, regulators have operated under limited capacity even at a time of increased workload due to requests from consumers, operators, as well as the development of crisis-countering policies. In addition, regulators with supervision and enforcement competencies had to develop smart-working tools and make full use of technology and data analysis tools to ensure that market integrity is maintained and market abuses are limited even in the absence of inspections or on-site monitoring. The use of new and emerging technologies is, in many countries, at the forefront of measures designed to directly combat the spread of COVID-19 (for instance, track and trace mobile apps in South Korea, Germany or United Kingdom) (OECD, WB, 2020[13]). Economic regulators will have the challenge to harness these insights and apply them to the sectors that they regulate.

 How to define an exit strategy?

How and when to define an exit strategy are fundamental but inherently difficult questions. Across countries and sectors, governments and regulators have implemented emergency measures to support market actors manage the consequences of the pandemic. These measures, such as those described in this brief, can have strong medium- or long-term impacts on the operations of the market. In phasing out emergency measures or easements, regulators may be called on to co-operate with the government and other stakeholders. Through data collection and interactions with stakeholders, regulators hold key insights into the functioning of markets and regulations, which can support decision-making. In shaping an exit strategy, regulators will need to ensure maximum transparency in decision-making and enable scrutiny of their actions, as well as make sure emergency measures are not maintained longer than necessary. By doing so, regulators will stay predictable and accountable, and can bring confidence to market actors in a time of need.

The phasing out of measures will differ per country and sector, and will depend on the exact nature of the measures in place and on the market conditions. In some cases, initiatives are by design time-bound, helping market actors to form their expectations and plan for the future. Clear communications on criteria for decision-making and new dispositions can bring clarity to market actors, enabling a smoother transition.

 How will the pandemic affect market structures?

A major concern for economic regulators is how the drop in demand will impact operators and ultimately, market structure. Although the depth of this effect differs between sectors, all sectors have faced shifts in consumption patterns and levels. For example, in transport sectors, restrictions on movement, remote working and social distancing have caused a strong decrease in the demand for transport: daily flights experienced a drop of 80% worldwide due to COVID-19 related restrictions (late April compared to early January 2020) (ITF, 2020[4]). In the energy sectors, demand has decreased in line with halted production or lower business activity, with data in mid-April 2020 showing an average decline in energy demand per week between 18% and 25%, depending on the severity of lockdown measures (IEA, 2020[3]). In France in March 2020, the Commission de regulation de l’énergie (CRE), the energy regulator, reported a 15% decrease in electricity consumption on average compared to the level usually seen in March. On the other hand, the electronic communications sector has experienced a surge in demand (BEREC, 2020[14]), with internet exchange points experiencing 60% more traffic than before the outbreak (OECD, 2020[2]). Especially in cases where demand falls significantly compared to pre-crisis levels, business continuity and competition could be at risk.

When demand decreases, operators see a drop in their revenues, affecting their financial viability. When revenues drop sharply, while fixed costs do not move along, company cash flows will be limited. Measures to delay consumer payments may further increase this issue for operators. In extreme cases, the drop in revenues could lead to the bankruptcy of companies. In other cases, the drop in demand may prevent potential new competitors from entering the market. Both situations may harm competitive pressure in the market in the short-run, and are likely to have long-lasting effects on market structures in case demand does not return to pre-crisis levels. This may affect market outcomes for the final consumers, making more challenging to ensure access to affordable services of high quality.

A more active role of the state in the market in response to the crisis may also affect market structures in sectors that had been previously fully liberalised. As a crisis-response tool, governments are considering taking equity stakes in distressed firms. The COVID-19 pandemic may, therefore, result in increased state ownership or control of enterprises (OECD, 2020[15]). More broadly, state aid (including other forms such as loans and loan guarantees) to companies can distort competition as government involvement in sectors alters the competitive position of the company that receives state aid relative to its competitors (OECD, 2020[16]). The IRG rail, a group of 31 rail regulators in Europe, stressed the importance of “a balance between emergency measures and the need to safeguard fair competition in rail markets as well as a level playing field across transport modes” when implementing bailouts and other forms of state aid (IRG Rail, 2020[17]). In a similar way, government involvement may affect intermodal competition between alternative services. For example, when governments provide state aid to one mode of transport, such as air travel, but do not support rail operators, this could shift demand between sectors.

As soon as market conditions permit, a government may decide to relinquish its stake in a firm. Carefully designed exit strategies can help minimise the cost of government intervention for the taxpayer. Such strategies will need to rely on sound independent advice in order to ensure accurate valuations of investments and divestments (OECD, 2020[15]). Economic regulators could have an important role to play in this regard given the knowledge and data that they hold and their experience in providing evidence-based, impartial advice to support objective decision-making by the executive.

On the other hand, the disruption of the crisis, in particular in hard-hit sector such as transport, and the post-crisis recovery offer opportunities to build back better, for example aligning support measures with climate objectives.

 How to ensure sufficient investments?

The crisis adds uncertainty to infrastructure planning and has impacted capacity of both public and private actors to mobilise resources for future investment, at a time when the effects of climate change already placed stress on the resilience of infrastructure networks. For example, the IEA estimates that energy investment is set to fall by one fifth in 2020 due to the COVID-19 pandemic (IEA, 2020[19]). Like any crisis, the COVID-19 pandemic creates significant volatility and increased uncertainties on the global financial markets. This can, in turn, negatively affect valuations and credit ratings of operators in certain sectors, and impact the availability and cost of capital. In the aftermath of unprecedented stimulus packages (for example, an estimated USD 2.3 trillion - around 11% of GDP - in the United States of America or EUR 110 billion – nearly 5% of GDP – in France (IMF, 2020[20]), fiscal space for public investment in infrastructure may be undermined.

Investment may be affected in a number of ways. When the crisis affects companies’ cash flows, such as through low demand for services or more medium-term pressure to keep utility prices low for customers, this may limit their ability to invest in their networks. Companies as well as policy makers may need to reprioritise their investment needs, and will re-evaluate budgets. Moreover, even in situations when companies have the financial means to invest in the infrastructure, they may choose not to do so due to a more uncertain environment or revised expectations of future demand for services.

The impact of the COVID-19 crisis will need to be assessed by regulators and policy makers as it may have further significant medium- and long-term impacts on the resilience of networks and their ability to remain reliable and provide high quality services. By providing guidance, and showing integrity in adhering to long-term goals, regulators may be able to increase confidence of operators and potential investors. The post-crisis recovery can also be an opportunity for promoting investment in low-carbon infrastructure and innovation in the utility sectors.

Regulators can provide crucial information to support these efforts by monitoring the economic consequences and risks to strategic investments in regulated sectors. In France for example, the National Assembly requested the French transport regulator (Autorité de Régulation des Transports – ART) to evaluate the issues faced by the railway, road and airport sectors, to inform government actions on the impact of the pandemic. To do so, ART is collecting and intends to publish data on the interruption of rail infrastructure management, renewal projects and related costs.

 How will the role of economic regulators evolve?

The continued functioning of markets and the increased co-ordination between actors during the pandemic have highlighted the relevance of economic regulators and their role in the economy. Traditionally, regulators balance competing priorities, such as consumer protection, competition and market integrity and efficiency; the emergency context has compelled them to rebalance these priorities. In the short term, many focused their actions towards consumer protection and ensuring that businesses continue to operate, sometimes to the detriment of other objectives, in line with government policy and the emergency context. By doing so, regulators de facto expanded their role and entered a new era of closer collaboration with the government. In the longer term, regulators may be called on to contribute to national programmes of economic recovery, and enhance the global competitiveness of their national economies beyond their traditional pre-crisis mandates.

Going forward, markets will continue to be transformed by the economic, social and behavioural effects of the crisis and related government measures. In this context, economic regulators can provide in-depth data, objective advice and technical decision-making regarding the efficiency and resilience of new economic/market models.

Independent economic regulators exist for the purposes of “impartial, objective and evidence-based decisions that will inspire trust in public institutions and encourage investment” (OECD, 2017[21]). The prioritisation of regulatory activities during the crisis has been led by governments in response to the sanitary state of emergency. Regulators have also adjusted certain regulatory practices, by introducing regulatory easements or reducing the scope of ex-ante analysis or stakeholder engagement, as seen in this brief. As emergency decision-making is phased out, regulators will need to re-instate robust, transparent and accountable mechanisms and assess whether regulatory frameworks need to be adjusted or can be returned to pre-crisis assumptions. This period may present a “pinch-point” for the independence of the regulator, as market players are reeling from the effects of the crisis, and as the government is playing a more active role in markets through stimulus packages or targeted interventions in support of specific market actors. While the division of roles between the regulator, the executive and other stakeholders may have been clear before the crisis, role clarity may decrease in this period. In this context, regulators will need to openly communicate their recommendations with regard to safeguarding consumer interests and the integrity of the market on a clear evidence-base, contributing to a predictable and transparent vision for the sectors that they regulate.

Some regulators may also feel the pressure of the crisis on their funding model. The crisis clearly highlights that when a regulator is funded solely through fees paid by industry, while it may be free of government interference in its finances, changes in the market directly affect the regulator’s funding and may undermine its capacity to deliver on objectives. For instance, the Civil Aviation Authority in the United Kingdom deferred any increases to its charges to operators until 1 July 2020, in an effort to support the industry (CAA, 2020[22]). However, decreases in the regulator’s funding can ultimately also affect its ability to fulfil its objectives, and this trend will require close monitoring and agile reactions by the regulator on its operations and eventual changes to its funding model.

Finally, the resilience and adaptability of regulators to the formidable challenges posed by the pandemic should be seized as a learning experience and opportunity. While it is important to be transparent and use predictable criteria for phasing out of the emergency, it is worth recognising that regulators have, through a suite of measures, successfully adapted to new needs in record time. Agencies have devised new ways of working with stakeholders, making decisions, working remotely, and at the same time, have implemented emergency measures designed to keep markets functioning and customers and operators above water. The crisis may well have been one of the biggest live experiments in innovative and agile regulatory governance. Moving away from the crisis, regulators should assess the success of the different techniques that were used and the results of emergency measures that were rolled out. Sharing experiences will provide insights into best practices during crisis periods, which could help governments and regulators face future challenges. Finally, these innovative methods and agility can inspire ways to increase the efficiency of the regulator under normal market conditions.

 Australia, multisector: Australian Competition and Consumer Commission (ACCC)

During the crisis, ACCC’s priority is maintaining competitive markets by ensuring changes in the competitive landscape are temporary and supporting competition during economic recovery. The 2020 Compliance and Enforcement Priorities that guide ACCC’s work are still in place, but ACCC is prioritising those most relevant to competition and consumer issues arising from the pandemic.

ACCC is focusing on addressing exploitative business behaviour during the pandemic, prioritizing activities to counter price gouging for essential products. ACCC’s consumer support actions include raising awareness of COVID-19 scams. ACCC is paying special attention to affordability issues, monitoring for excessive pricing. In addition, ACCC established a COVID taskforce to educate industry about obligations related to cancellations, refunds and suspension of services. ACCC will continue to engage with governments and businesses about authorisations that could be considered anti-competitive during normal times but may be within the public interest during the crisis.

ACCC is trying to minimise the regulatory burden on industry by introducing flexibility in enforcement activities. It is taking into account the impact on businesses when it decides on the scope and timing of requests for information and documents. It is restricting compulsory examinations and conducting necessary examinations remotely. ACCC may consider regulatory exemptions in infrastructure sectors if current obligations are too burdensome in light of the crisis. ACCC is deferring where possible public inquiries about new regulation. ACCC will still evaluate proposed mergers; some may be conducted on an urgent basis and others may have extended timelines. ACCC has issued interim authorisations for co-operation where these offer public benefit and address problems faced by industry participants, weighing the public benefits against risks including potential impacts to the competitive dynamics of the industry. The regulator has stressed the time-bound nature of the measures it is taking in response to COVID-19, stating that it wants to ensure any changes to the competitive landscape now are temporary.

 Australia, energy: Australian Energy Regulator (AER)

AER issued a statement of expectations for energy businesses to protect consumers and the energy market during the crisis. Some of the expectations address payment and affordability issues. Energy businesses are expected to offer payment plans or hardship agreements to any residential and small business customers that may be in financial stress. AER asks suppliers to modify existing payment plans if necessary due to a customer’s changed circumstances and states businesses should suspend referrals of customers to debt collection agencies through 31 July. In addition, AER has expressed a clear expectation that no residential or small business customers in financial stress are disconnected without their agreement through at least 31 July 2020. It expects the same for large business customers that on-sell energy to residential or small business customers. Suppliers should waive fees for disconnections, reconnections and breaking contract for small business customers with suspended operations as well as daily supply charges for retailers.

The statement of expectations also addresses consumer support and information. According to the statement, businesses should keep websites, social media and call centre messages up-to-date with clear messages about the issues addressed in the statement. Businesses are expected to communicate clearly with customers about the availability of support

Other expectations in the statement relate to security of supply. Businesses are expected to ensure that supply to customers who require life support equipment is prioritised. In addition, they must minimise the frequency and duration of planned outages and precede outages with as much notice as possible.

 Brazil, e-communications: National Telecommunications Agency (Anatel)

The Brazilian National Telecommunications Agency (Anatel), within the scope of its mandate, and aware that the telecommunications sector is essential for Brazil to get through the current crisis in the best possible way, established a Crisis Committee.

In this context, Anatel and the main companies, associations of small and large broadband providers also signed a Public Commitment Agreement for keeping the country connected (Manter o Brasil Conectado) with measures to guarantee the access to and quality of telecommunications services. The following guidelines were defined:

Telecommunication services will continue to function

Action plans for maintaining services will be adopted considering the change in the usage profile. Measures that allow for technical, administrative and service teams to continue to perform their functions safely for the health of all will also be adopted;

Health and public security services will have special support

Operators will give priority to bodies that provide services of public utility and will assign the phone number 196 to the Ministry of Health for actions dealing with the pandemic;

Consumer difficulties will be addressed

Operators will adjust the mechanisms for payment of bills, providing alternative means for the population, even in social isolation, to continue to access telecommunication services. Special attention will be paid to consumers who use prepaid credits;

The population will be well informed 

Operators will send alerts and information messages to the population as requested by the competent authorities. Free access to the Coronavirus application, developed by the Ministry of Health, will be guaranteed. The Crisis Committee will monitor the implementation of the signed commitment and consider additional measures that may be necessary. In addition, Anatel will continuously monitor traffic and capacity of the telecommunication networks, articulating these efforts with stakeholders, including internet content providers. Emergency solutions that have as a main objective the continuity of the service and its access by the Brazilian population will be prioritised.

The initiatives can be accessed on a specific webpage on the Agency's portal and the regulator has also consistently provided information and updates to consumers through social media.

Furthermore, some telecommunication operators have provided free access to government applications (zero rating) for access to information, news and public utility. Some operators have also increased the amount of broadband, free of charge, for their customers to serve the population and, mainly, improve the connection to teleworking.

Examples of Zero Rating during the pandemic include:

A) The Ministry of Health launched the Coronavirus-SUS app aiming to make the population aware of the Corona Virus COVID-19. The application provides information on various topics such as symptoms, how to prevent the spread of the virus, what to do in case of suspected infection, as well as a map of nearby health units.

B) Caixa App: (Caixa Econômica Federal is a Government Bank) - Emergency Aid is a financial support programme for informal workers, the self-employed and unemployed, and its purpose is to provide emergency protection in the period of coping with the crisis caused by the Coronavirus pandemic – COVID 19.

 Brazil, energy: Agência Nacional de Energia Elétrica (ANEEL)

In response to the crisis, ANEEL interacted with stakeholders such as the Ministry and the electricity sector, to analyse the effects of the pandemic. The pandemic caused lower levels of consumption and increases in unpaid bills, which meant revenues for distribution companies fell and insolvency risk increased. ANEEL cooperated together with the executive to ensure the delivery of electricity and the sustainability of the sector during the crisis and after it. This resulted in the following response:

• The Treasury paid the electricity bills of nine million of the most vulnerable households for April to June.

• An executive order provided legal authorisation for distribution companies to take out loans from private banks with a future tariff coverage guarantee. ANEEL is working with the Ministry in defining rules for the loan, defining regulatory assets as guarantees and negotiating bank fees.

The regulator took a number of additional measures, in order to protect consumers and ensure service continuity and liquidity for electricity distribution companies’ cash flow. This included a temporary prohibition for distribution companies to cut the electricity supply and a relaxation in rules regarding metering and billing (no on-site measurement). ANEEL also relaxed a number of service and compliance requirements, including the requirement for distribution companies to pay compensation when it failed to deliver the required service quality standards. To alleviate the electricity distribution companies’ sharp drop in revenue, ANEEL postponed the application of tariff increases and advanced financial resources that were in sector accounts which would be allocated to companies throughout the year.

To protect its own workers, ANEEL moved to teleworking for majority of staff, keeping only a small number of employees at the office.

 Brazil, transport: Agência Nacional de Transportes Terrestres (ANTT)

ANTT introduced a wide range of measures, aimed at enhancing operators’ compliance with government-imposed sanitary measures and at improving the protection of passengers, of the operators’ employees and of its own staff. As such, for a period of 60 days:

• Strict cleaning measures need to be implemented by operators od road transport;

• Suspend enforcement action against operators for cancellation of routes, ticket suspension and service interruption;

• Charter services and passenger transport at the borders was suspended;

In addition, the maximum weight limits for cargo trucks was suspended for 90 days on federal roads in order to facilitate the supply chain in the country. Complementarily, traffic flow restrictions at major bridges have been lifted for this period.

In terms of administrative and enforcement proceedings, ANTT has suspended administrative processes deadlines and has given an additional time for regulated companies to comply with contract obligations. Dispute resolution in relation to fines applied to operators have also been temporarily suspended.

 Canada, energy: Canada Energy Regulator (CER)

In recognition of the ongoing public health crisis and economic disruptions related to the COVID-19 pandemic the Canada Energy Regulator (CER) has adapted the way it works and identified opportunities for flexibility in developing, applying and enforcing regulations. These actions respond to the current reality in which the COVID-19 pandemic may temporarily affect the ability of regulated entities and impacted persons to participate in CER activities, respond to requests, and/or comply with all regulatory requirements. They demonstrate administrative flexibility while aiming to not compromise the regulator’s safety and environmental protection mandate. Although these actions are part of a broader government wide response to the COVID-19 pandemic, the CER is only advancing administrative flexibility actions that are within its own jurisdiction at this time.

On 16 March 2020 the CER sent an initial letter to regulated entities and impacted persons which outlined immediate actions the regulator was taking in response to the COVID-19 pandemic, primarily precautionary measures and business continuity plans. On 29 April 2020, following further analysis and engagement with stakeholders, the CER released a second letter outlining additional response measures which would support administrative flexibility during the COVID-19 period.

Actions Supporting Administrative Flexibility as of 29 April 2020:

• Inspections and compliance verification activities will take place with extra precautions to keep people safe, or using technology to further reduce close personal interactions.

• Financial audits that haven’t already started will be postponed.

• Management system audits unrelated to ongoing construction activities or emergency response and that haven’t already been started, will be postponed.

• Corrective Action Plan filings arising from completed audits, where there is no direct impact on protection of people and the environment, will be assessed for timing extension upon request.

• External engagement for all regulatory framework improvement initiatives will be deferred.

 Canada, transport: Canadian Transportation Agency (CTA)

The Canadian Transportation Agency (CTA) has continued to deliver all its services through staff working remotely. It engages with stakeholders, communicates with the media and public, and provides updates on COVID-19 measures through its websites – including a webpage dedicated to providing COVID-19 information for travellers – as well as social network platforms and other electronic means.

In response to the COVID-19 pandemic and its impact on air transportation – such as significant travel restrictions and the mass cancellation of passenger flights – the CTA implemented a number of measures to allow air carriers to focus on immediate and urgent operational demands. These measures also sought to improve the odds that consumer choice and diverse service offerings will remain in Canada's air transportation sector over the longer term. They included:

• Temporary adjustments, until June 30, 2020, to certain obligations under the Canada Transportation Act and the Air Passenger Protection Regulations. For instance, air carriers were exempted from having to provide advance notice when temporarily reducing or suspending services on certain domestic routes. Requirements to pay passengers compensation for inconvenience for flight delays and cancellations within an air carrier's control were also modified – allowing air carriers to notify passengers of a delay or cancellation up to 72 hours (rather than 14 days) before the scheduled flight without having to pay compensation for inconvenience, and adjusting the amounts and length of delays for which compensation would be required. These modifications were made to provide air carriers with increased flexibility to adjust flight schedules without facing prohibitive costs.

• A temporary pause in interactions with carriers in dispute resolution activities (facilitation, mediation, and adjudication) involving air carriers also until 30 June, 2020. However, passengers can continue to file complaints with the CTA.

• A non-binding statement indicating that the issuance of vouchers to passengers affected by flight cancellations could be a reasonable approach in the context of the COVID-related global collapse of air travel, when flights are cancelled for reasons outside air carriers' control, passengers have no prospect of completing their itineraries, and there is no legislated minimum obligation for air carriers to provide cash refunds.

The CTA is also considering targeted delays in the effective date of certain provisions of the new Accessible Transportation for Persons with Disabilities Regulations – which come into force on June 25, 2020 – if immediate compliance with those provisions would require the investment of substantial effort and resources.

 France, transport : Autorité de Régulation des Transports (ART)

In response to the pandemic, a number of actions have been undertaken by the French transport regulator, Autorité de régulation des transports (ART), sometimes in coordination with the French government.

To ensure essential products (such as food and health products) to be transported swiftly, in France the processes of path allocation in the rail network give priority to freight trains. The ART has acted as a facilitator between the infrastructure manager and the railway undertakings to help ensuring the implementation of this prioritisation. While the decrease in passenger traffic further facilitated this process, the ART monitors that the implementation takes place without discriminating between different freight undertakings. Furthermore, following a suspension of the performance regime and incentive schemes which was requested by the rail operators, the ART will ensure no penalties will be charged when operators cancel train paths.

The ART took immediate action to be able to provide decision-makers with robust and up-to-date data on the situation in the transport sector. The ART collects and intends to display data on the interruption of maintenance and renewal projects, and their costs. At the request of the National Assembly, it evaluates the issues faced by the transport sectors, which will inform government actions in the sectors on the impact of the outbreak.

The French government also authorised the ART, like all public institutions, to transfer some competencies of the internal deliberative bodies to the executive positions, if this is justified by the situation. This authorisation however does not apply to the sanctioning powers.

 France, energy: Commission de Régulation de l'Energie (CRE)

 Finland, e-communications and transport: Transport and Communications Agency (Traficom)

In response to the COVID-19 crisis, Traficom has established a designated internal response team, which allowed a close coordination with external stakeholders – both governmental but also in the industry and consumer bodies. This allowed Traficom to continue to deal with business-as-usual matters, whilst at the same time it enabled the regulator to gauge the state of play in the markets very early on, and to understand the effects of the sanitary crisis, as well as concerns from the industry. This, in turn, facilitated an evidence-based collaboration with the government authorities, including discussions with the health authorities about the quarantine measures, or the border control and police force.

For immediate longer term measures, Traficom looked at temporary suspension or exemptions from the current legislation for operators.

 Germany, multisector: Bundesnetzagentur (BNetzA)

In Germany, the drop in demand for passenger transport caused problems in storing redundant trains. Bundesnetzagentur (BNetzA) enabled operators to co-operate to resolve the issue and store the trains elsewhere. It temporarily suspended ex ante performance schemes for regulated entities and gave operators greater flexibility to modify their terms and conditions of service regulatory obligations without ex ante approval by the regulator.

For telecommunications, BNetzA developed a guidance document on the measures that operators can take when the increased traffic due to teleworking, e-learing etc. on the network leads to issues.

For energy, BNetzA indicated it would be more flexible on construction deadlines for tendered renewable energy projects, such as on-shore wind.

Furthermore, BNetzA published a list of all companies with infrastructure-related activities (telecoms, energy, railway and postal network operators). BNetzA published this list to facilitate operators to get "pass-throughs" for their staff in case they need to go out to repair the grids. Operators can download the list and present it to local authorities for this purpose.

 Greece, e-communications: Hellenic Post and Telecommunications Commission (EETT)

During the crisis, EETT has supported all actions and measures taken by the state to ensure connectivity and telecommunications network quality, as well as maintenance to support the increase in demand, due to massive remote working, e-learning and the development of e-health services. EETT is joining forces with network operators and supporting them at this time.

During this period, the regulator has given priority to:

• The monitoring of network performance during the peak hours for network connectivity and speed to be secured and not be degraded during those hours;

• Measures for intensification and quality control of services;

• The implementation by the operators of the specific guidelines of open internet regulation.

The regulator has participated in increased co-ordination and consultation activities (such as teleconferences between representatives of the Ministry and the network operators) in order to address the expected increase and network overload, while ensuring the integrity and reliability of telecommunications infrastructure. In addition, in collaboration with BEREC (the Body of European Regulators for Electronic Communications), a special reporting mechanism was established and sent to the European Commission. An individual report (data collection from ISP’s) is sent by EETT (and by all other National Regulatory Authorities - NRAs) to BEREC on a weekly basis, related to the increase in internet traffic. The report includes the following information:

• Status of the overall internet traffic across country, both in the mobile and fixed networks;

• Actions taken by the NRA;

• Actions taken by the operators to mitigate the risk of traffic congestion;

• Communication by the operators towards both public bodies and end-users;

• Assessment of operators’ Net Neutrality conformity.

The Ministry of Digital Governance has also spearheaded a number of other initiatives; for example: mobilising operators to provide services free of charge, or providing free access to mobile data for remote learning purposes. Complementarily, EETT has taken the initiative to invite network operators to evaluate the possibility of providing their customers (and especially employees, students and pupils) with free call minutes, data and high speed broadband support to cover increased needs of e- learning and remote work both for public and private sector.

Under the initiative of the Ministry, digital tools have also been utilised to respond to the crisis. To support the implementation of emergency measures, an SMS system was developed for citizens to obtain permission to leave their home and circulate in order to conduct their daily personal businesses during the period of restrictive measures (https://mindigital.gr/archives/1284). To facilitate access to medical services, an electronic medical prescription system was implemented for all patients, which enables them to forego a physical visit of the practitioner and instead can receive an electronic or mobile prescription (https://mindigital.gr/archives/1287). Coordination across the public sector has been facilitated through the creation of a “e-presence.gov.gr” platform for teleconferences across all the public sector. In this endeavour, EETT had a supportive technical role in implementing measures.

EETT has also implemented the remote working for its entire staff with VPN access.

 Greece, transport: Regulatory Authority for Railways (RAS)

In response to the crisis and the stress it has placed on market actors, RAS extended time limits/deadlines in on-going complaint investigations (Dir.2012/34 and Reg.1371/2007) and has informed all parties accordingly. Moreover, RAS revised and postponed some areas of regulatory activities, for example with regard to supervision of the sector (Decision on “Suspension of Supervisory Activities of the year 2020 until 30.04.2020”).

RAS is collecting data on the economic consequences of COVID 19 on the rail market (evolution of traffic and the level of losses incurred by the infrastructure manager and the Rus) in order to support government take the appropriate measures to support the railway sector.

In areas under the responsibility of the executive, RAS proposed to the Ministry of Infrastructure and Transport to examine the possibility to extend the validity of certificates and licenses provided according to the European legislation. RAS also proposed to the Infrastructure Manager to alleviate the railway companies from some of the infrastructure charges. In general, the regulator is trying to turn the crisis into an opportunity for rail transport.

The objectives of the measures from the perspective of the regulator are to:

• continue to operate rail infrastructure during this exceptional period in order to support the provision of essential rail freight;

• ensure the continued operation of maintenance facilities and terminals

• monitor the economic impacts of the crisis on the transport sectors and starting to prepare for the aftermath of the crisis.

 Italy, energy and water: Regulatory Authority for Energy, Networks and Environment (ARERA)

ARERA has introduced a number of changes in terms of its regulatory aims, tools and processes, and governance and organisational structure in order to respond to the crisis.

The regulator modified a number of its regulatory aims and adopted measures that span consumer protection, extensions and exemptions, financial shortages coverage, economic loss coverage and stimulus for economic recovery.

For example:

• The regulator has created an emergency account up to 1billion Euros to support regulated entities in energy and water sectors (i.e. electricity, gas, water & wastewater) and defined the rules to access to it.

• In the electricity sector, it has added a cap and floor to costs for dispatching units that do not manage to predict their consumption.

• It implemented rules in relation to suspension of shut-off against default payers during the time of the crisis to protect consumers faced with the inability of paying bills for essential services such as water, electricity and gas.

A number of processes have also changed: relations with stakeholders are more frequent but informal; formal consultation processes have been put on hold; routine data reporting requests are suspended and the regulator is performing ex ante assessments based on data that it already holds.

Finally, the regulator has adapted its governance and internal organisation. It has established internal task forces to gain deeper understanding of COVID-19 implications for each regulated sector, sometimes with board members or senior decision-makers substantially involved in leading these. ARERA is employing smart tools to facilitate remote working, rescheduling monitoring and enforcement duties to free up staff for urgent tasks, and revising its strategic targets.

The regulator has published detailed amendments in respect of waste management regulations as a consequence of changes in national law, and presented its set of measures to the parliament and government.

 Italy, transport: Transport Regulation Authority (ART)

In the absence of ad hoc legislation setting out special provisions for the exercise of the Authority's functions and powers, the Italian Transport Regulation Authority (ART) has continued to assess the extent to which its existing ex ante regulatory measures remains applicable, to consider amendments if necessary and appropriate and to second legislative measures adopted to alleviate specific procedural onuses concerning administrative proceedings, which may particularly difficult to meet under the circumstances.

In this latter respect, in order to accompany the provisions enshrined in emergency legislation with procedural measures falling within its remit, ART adopted measures concerning the calculation of deadlines relevant to the definition of administrative proceedings pending at the date of February 23rd and thereafter. While proceedings were not automatically suspended, in line with what is provided for under the law and upon the motivated request of interested parties, existing deadlines have been pushed forward.

Furthermore, where relevant, the regulator is kept informed by the transport undertakings about the requests they address to the infrastructure managers or other managing bodies and the administrations concerned to obtain adjustments of contractual provisions taking into account the services which are currently operating. The salience of the issue rests on the different incidence of the epidemiological emergency on open access services and industries as opposed to services rendered under public service obligations.

In addition, the Authority receives reports and complaints with reference to its functions concerning the protection of passenger rights and the quality of services.

More generally, beyond the immediate emergency measures, attention of the regulator has shifted to the management of the recovery and related conditions to ensure the continuity of domestic and cross-border freight services and the supply of shared transport passenger services (both by rail and other means) under conditions and through modalities that are consistent with the measures adopted to protect passengers’ health.

 Lithuania, energy: National Energy Regulatory Council (VERT)

VERT’s emergency situations operation centre reviewed recommendations for internal staff management during the pandemic. Apart from essential staff, staffers have the possibility to work from home. The emergency situations operation centre issued requirements for handling a confirmed coronavirus diagnosis among VERT staff or contact with a confirmed case.

VERT continues to carry out its usual functions with some exceptions. Activities that would normally involve face-to-face contact have been suspended or altered. VERT has suspended physical inspections (although inspections of outdoor equipment is allowed under certain conditions) and physical fact-finding in dispute resolution cases. Consultations with consumers and businesses have been moved online. VERT continues to participate in the completion of construction processes under certain conditions (for example, if decisions based on written documentation alone are not possible or if the object or installation is outdoors and accessible while conforming to Ministry of Health guidelines). VERT continues to grant certain permits, but permits requiring a site visit will only be considered after assessing the necessity of the permit and ensuring site visits can be conducted while conforming to Ministry of Health guidelines. VERT has publicly consulted and has adopted amendments to VERT regulation to take into account when fixing regulated prices the exceptional industry costs incurred during the pandemic from customer default on payments, interest on a working capital loans and protection measures. Other functions - such as registering market participants, issuing certificates, evaluating investments, issuing licenses, and publication of fuel prices – are conducted as usual.

The parliament, government and the regulated industry have taken measures to ensure continuity of supply and affordability in the energy and water sectors. The electricity distribution system operator announced that they would not cut off electricity or natural gas for consumers in cases of non-payment. The DSO will limit work on the system that causes temporary shutoffs. Measures adopted by parliament specify that consumers should have the opportunity to defer payments or pay in instalments for electricity and gas consumption and municipalities can defer or pay in instalments for utilities and heat. In the water sector, the largest company announced that customers in a state of financial need because of coronavirus are eligible to defer payments without interest.

 Mexico, e-communications: Federal Telecommunications Institute (IFT)

The Federal Telecommunications Institute (IFT) has developed several recommendations to maintain the effective provision of telecommunications service and to inform and support users of e-communications services during the COVID-19 emergency. With regard to the services and procedures of the regulator, while face-to-face activities have been temporarily suspended, IFT has made 126 out of its 173 procedures (73%) available digitally.

The regulator has created a webpage “Facing Coronavirus” that brings together information on responses by operators and the regulator, as well as the official information published by the Ministry of Health. For example, the webpage includes information on consumption management by consumers in the interest of network capacity, such as recommending the use of the internet vs mobile data, favouring the use of voice communications and instant messaging vs videoconferencing or video calls, and adjusting schedules to periods with lower data traffic. Information is made available in Spanish and in indigenous languages.

In co-ordination between IFT, the government and operators, it was decided that SMS services would be used to provide information and updates on the pandemic to citizens. Moreover, users can access the Federal Government information portal on the Covid-19 pandemic (https://coronavirus.gob.mx), without consuming data on their plans. During this period, some mobile service operators are also offering additional support schemes to their clients, such as flexibility of data limits and/ or fair use policies without extra charge, the extension of the validity of some prepaid plans. Similarly, in the case of fixed telephony and internet services, operators have put in place a contingency support scheme allowing customers to temporarily migrate to a low-cost plan.

Finally, in order to ensure continuity of services, the regulator has recommended that federal, state and municipal authorities across Mexico guarantee that workers of telecommunications concessionaires are able to carry out necessary actions with regard to the installation, operation and maintenance, both preventive and corrective, of their infrastructure, as well as authorizing, procuring and safeguarding their entry, exit and transit.

 New Zealand, multi-sector: New Zealand Commerce Commission

The Commerce Commission took a number of actions to ease the burden on regulated industry so that these actors could focus on continuing to provide essential services. Responding to specific industry requests and working with the relevant market regulator, the Commission identified and deferred some regulatory actions that placed a burden on service providers. The regulator deferred a range of activities, including information requests and disclosures, early-stage compliance and enforcement actions, operation of some incentive schemes, and the initial steps for long-term activities. The regulator stated that it would be pragmatic about penalties where companies can demonstrate that any compliance issues have arisen because it prioritised efforts to protect customers, security of supply and safety or as a consequence of factors entirely outside of the company’s control.

To keep consumers informed about issues related to communications networks, the Commission published a page on their website with tips for consumers on improving broadband performance. The page provides easy-to-understand information about what to do if there is an issue and where to go for help. It includes information on locating financial support for e-communications services and instructions on resolving disputes with broadband providers. The regulator initiated this action, in consultation with consumer and other relevant bodies. The Commission subsequently published a similar note for consumers about energy on the same pages.

 Peru, e-communications: Organismo Supervisor de Inversión Privada en Telecomunicaciones (OSIPTEL)

OSIPTEL had taken a broad range of measures together with the government, in order to maintain continuity of service and resilience in the telecoms sector during the sanitary crisis. These were focused on ensuring that operators avoid network saturation to facilitate teleworking and education services, protection of vulnerable consumers and of those impacted by economic effects, and ensuring that sanitary guidelines are observed and face-to-face contact is reduced between operators’ staff and consumers.

As such, the following specific measures and recommendations were implemented:

• Traffic management was required of all operators, so that remote working, tele-education and health services is prioritised during working hours;

• Increase in data caps or speed reduction caps was recommended to providers;

• Face-to-face customer support services were suspended including the provision of new services which require physical presence in a personal home, the replacement of SIM cards, or repair of equipment;

• New fixed services could be contracted under the provision that operators perform instalment at an external point outside the user’s home, while complementary wiring and installation inside the users’ home must be performed by the users themselves through remote technical assistance;

• Cessation of service due to bill payment was forbidden until the end of the state of emergency; consumers were granted the opportunity to arrange instalment debt payments.

In terms of internal organisation and changes to the ways of working, OSIPTEL suspended face to face customer services in all offices nationwide, as well as deadlines of any administrative procedures carried on with operators. This included easements on the periodical information requests and reports provided to the regulator. In addition, in order to mitigate some of the financial strains on the operators, OSIPTEL extended the regulatory fee payment date by 2 months.

 Portugal, transport: Autoridade da Mobilidade e dos Transportes (AMT)

In response to the pandemic, the Autoridade da Mobilidade e dos Transportes (AMT) faced an increase in complaints regarding the cancellation of service, the validation of tickets and regarding the lack of compliance by the operators and passengers with the health rules adopted within the scope of the pandemic. The switch to remote working and social distancing makes it more difficult, as there is a decrease in response to information requests to gather evidence.

The AMT works closely with municipalities during the pandemic, to gain essential information on the situation of small companies in the sector, in order to monitor trends in the sector. As municipalities are closer to especially the smaller companies in the market, the collaboration increases the insights of AMT in the sector.

 Portugal, water and waste: Entidade Reguladora dos Serviços de Águas e Resíduos (ERSAR)

In Portugal, the Ministry of Environment, the Water and Solid Waste Regulator (ERSAR), the Portuguese Environment Agency (APA) and the Health Directorate have been working together and several measures have been taken to guarantee service availability.

The state of emergency was declared by the government at the end of March. The Minister of Environment, with contributions from ERSAR, identified the minimum services needed in the water and waste sectors. After that, the government published several orders related to the minimum services to detail what this means.

A summary of the national legislation related with the COVID-19 pandemic, with impact in the water and wastewater sectors, can be found in this dedicated webpage under the document title "Legislação relevante COVID-19": http://www.ersar.pt/pt/site-comunicacao/site-noticias/Paginas/Perguntas-Frequentes-Informa%C3%A7%C3%A3o-COVID-190420-3045.aspx.

In late March, the Minister of Environment set up an Emergency Monitoring Structure and appointed ERSAR as the responsible entity for monitoring the situation of the water/wastewater and solid waste operators. The main objective was to identify and control potential causes of problems in services delivery. The regulator carried out a questionnaire survey twice a week to tackle difficulties in providing services and identify the sector’s needs in terms of materials such as gloves, masks and alcohol gel, in order to anticipate and prevent product shortages. The survey was sent to all operators (almost 400 entities) and the data collected was treated and included in a report sent to the Ministry. Following the treatment of the data, the regulator also contacted the entities that revealed service continuity problems, by phone, to understand the scale of the problem and to try to help them solve it. Currently, after the end of the emergency state, the surveys and reporting continue on a weekly basis.

ERSAR defined and published recommendations for water companies and laboratories, to guarantee the safety of tap water, and also for solid waste collection and treatment operators. Following ERSAR's recommendations, drinking water suppliers and solid waste operators have been adapting their procedures to minimise contamination risks. The operators’ contingency plans include ERSAR's recommendations and rules to minimise the spread of the infection among workers that remain active to guarantee minimum services provision.

ERSAR and the Environment Agency developed joint guidelines for the solid waste sector, which include specific advice for the following:

• Management of waste produced by households

• Management of waste produced in companies, hotels and other accommodations with a high concentration of people, ports and airports

The guidelines for waste collection and treatment operators, include:

• General recommendations

• Recommendations for hospital waste management operators

• Recommendations for the management of households’ urban waste and small waste producers (e.g. small nursing homes)

• Recommendations for waste management of large producers (of industrial and non-hazardous hospital waste) and for recycling facilities

• Minimum services

• Specific guidelines on how to use personal protection equipment such as gloves and masks, and other useful guidelines to maintain good hygiene of materials and surfaces.

A third document was also developed with guidelines and measures that should be implemented by operators in order to protect workers involved in waste collection and treatment operations.

The principal measures for the water companies are as follows:

1. 1.

   Full implementation of the legal drinking-water quality control with flexibility in the sampling points definition, although they should always comply with the consumers' tap criteria.

ERSAR reminded water companies that there are still several buildings open that could be used as sampling points such as some schools (that remained open to serve the children of health professionals and emergency personnel), as well their own premises or outdoor water fountains connected to the network.

1. 2.

   Where it is not possible to guarantee the legal drinking-water quality control, water companies are allowed to postpone the scheduled sampling, but they should follow at least one of the next two recommendations:

• Carry out the sampling procedure according to the initial schedule using sampling points in the network instead of the consumers' tap. In this situation, the water companies are advised that this sampling and testing does not replace the legal one and later on (after the emergency) the regulator will have to analyse the possibilities of guaranteeing the compliance with the DWD.

• If, for several reasons (for instance lack of personnel or reduced laboratories capacity to analyse samples), it is not possible to implement the previous recommendation, ERSAR advises the water companies to test the microbiology and the critical parameters, selected according to their risk assessment, in the network. Like the previous recommendation, after the end of the emergency the regulator will analyse the possibilities to guarantee the DWD full compliance.

1. 3.

   Guarantee at all times at least 0.5 mg/l of free chlorine according to WHO recommendations.

2. 4.

   Guidelines and measures that should be implemented by the operators in order to protect workers.

Recently, considering the end of the emergency state and the gradual return to normality, ERSAR issued a specific recommendation with safety procedures for closed buildings that were shut down during the lockdown. The document points out that:

• Before resuming activity in buildings such as schools, hotels, factories, offices and others, the maintenance staff should carry out inspections in the network to detect eventual changes in the quality of stagnant water due to the loss of residual disinfectant and contact with the materials of the building network;

• A set of practical measures should be implemented in terms of cleaning and sanitizing the network of cold and hot water in order to prevent changes in the quality of the water and the proliferation of Legionella, among other microorganisms, especially in large buildings.

Furthermore, previous guidelines for the solid waste sector were updated in line with the easing of lockdown measures, focusing on:

• • Extending the scope to the correct disposal and handling of waste produced in workplaces, schools and universities, among others, to ensure a safe restart;

• Recommendations for the gradual return to normality for waste management, for instance, in terms of the frequency of selective and undifferentiated waste collection and the withdrawal of the storage period of selectively collected waste destined for recycling, prior to its processing.

Regarding tariffs, ERSAR considers that operators should use social tariffs or other similar mechanisms, to solve the problems of unemployment and layoffs. The measures taken by operators should be directed towards people with proven financial needs instead of indiscriminately. This is a frequently asked question, which ERSAR has included in a FAQs document available on its website as well as on private forums for operators.

Concerning the provision of essential services, the government issued an Act and under article 4 of Law no. 7/2020, dated 10 April 2020: i) during the state of emergency and in the following month, the suspension of the provision of essential services, namely water supply service, is prohibited. ii) If there are due amounts as of 20 March 2020, a payment plan must be agreed between the service provider and the consumer, starting in the second month after the state of emergency.

ERSAR's team remains connected with the operators, using the ERSAR Portal - a private platform with forums used to share information and answer questions on how to deal with COVID-19.

 Portugal, energy: Entidade Reguladora dos Serviços Energéticos (ERSE)

 Russian Federation, multisector: Federal Antimonopoly Service (FAS)

The Federal Antimonopoly Service (FAS), in accordance with the instructions of the President, the Government of the Russian Federation, is at the forefront of the fight against coronavirus and monitors on a daily basis the price and availability of essential goods and basic necessities such as medicines, medical products, and foodstuffs.

Monitoring utility sectors and competition

Regarding utility sectors and competition policy, FAS has adopted several initiatives and continues to monitor the situation.

In connection with the transition of a huge number of workers to remote work, the FAS monitors traffic and capacity of mobile networks, as well as the possible increase in prices for mobile communications. According to the regulator, despite the fact that traffic on the communication network has grown by 20% since the beginning of the sanitary emergency, price increases are not expected even with the projected increase in traffic.

The FAS Russia is also closely studying cases of increasing prices for air tickets caused by air travel restrictions as a result of COVID-19.

Wholesale and retail prices for fuel and energy resources are monitored on an ongoing basis.

The FAS Russia also actively monitors any changes in antimonopoly regulation taking place in the world and uses it when adjusting its activities in the current conditions.

Support to businesses is currently considered by the Government of the Russian Federation as one of the most important tasks in light of the effective recovery of the country's economy in the post-crisis period. In this context, the FAS Russia is working on the possibility of introducing some exemptions from antimonopoly legislation if the consumer benefits will exceed the likely damage to competition, as well as changes in M&A review.

Changes in FAS Russia’s operational work

The FAS Russia, being a multi-sector regulator, continues to exercise its functions, namely to monitor compliance with antimonopoly laws, tariff regulation procedures, public procurement and foreign investment.

On March 20, the FAS Russia announced that it would suspend appointments and inspections until April 10, 2020, with the exception of unannounced inspections initiated on the signs of violations of laws related to protecting the life and health of citizens, legislation on public procurement and legislation on state defence orders.

The FAS Russia also “temporarily postponed”, “taking into account all necessary deadlines”, the consideration of cases of violation of antimonopoly legislation and administrative offenses, or started their remote consideration by video link.

Recognising the COVID-19 pandemic as a force majeure event, the FAS Russia will take this situation into account when considering complaints about state and municipal procurements and procurements of state-owned companies and cases of administrative offenses.

The measures taken by the FAS Russia in order to stabilise current business processes include the appeal of the FAS Russia to the Central Bank with a request to ensure the operation of banks regarding the functioning of special accounts and the issuance of bank guarantees required to participate in procurement, as well as actions taken by the FAS Russia to maintain the regime work of electronic platforms for bidding.

A big step in ensuring the continuity of law enforcement processes is the ability announced by the FAS Russia to remotely (in the form of video conferencing) consider complaints at the central office of public tenders, concessions, privatisation, bankruptcy and other industries from March 26 in all federal districts (excluding Moscow and the Moscow region).

Moreover, more than half of the employees of the central office and regional offices of the FAS Russia switched to a remote format of work; interaction between employees is carried out through video and audio communications.

In conclusion, the FAS Russia, as a federal executive body, continues to exercise its powers on a daily basis during the pandemic. To date, co-operation between the FAS Russia and its regional offices, as well as with other federal executive authorities, has become especially important, which allows the regulator to observe the complete picture on socially significant markets online in all regions of Russia, to conduct joint price control and prevent goods shortages.

 Spain, multisector: Comisión Nacional de los Mercados y la Competencia (CNMC)

CNMC is working closely with the Government in the response to the COVID pandemic. In this context, they have prioritised consumer protection, through the application of competition rules and regulation. More specifically, CNMC opened an online whistleblowing hotline and enquiries platform to facilitate receiving competition complaints and inquiries in relation to practices connected with COVID-19. The objective is avoiding anti-competitive practices or market manipulation, and also guaranteeing the proper functioning of regulated markets for the benefit of consumers and users.

Since March 14 and until the end of the state of emergency, the Government has suspended procedural deadlines in all jurisdictional orders. Nevertheless, the CNMC has adopted measures to guarantee the continuity of procedures that are essential for protecting general interest or basic operations of public utilities. The Government, counting on the surveillance of the CNMC, has also imposed disconnection bans and measures to ensure the supply of basic utilities.

The CNMC continues to pursue actions necessary to supervise the markets and to promote effective competition, as well as other work aimed at matters of access to infrastructure, which it regards as urgent.

 Turkey, e-communications: Information and Communication Technologies Authority (BTK)

For maintaining the current level, quality and safety of the electronic communications services in Turkey during the COVID-19 pandemic, the Information and Communication Technologies Authority (BTK) and Ministry of Transport and Infrastructure of Turkey took a number of measures in co-ordination.

Within this context, operators of public electronic communications networks and services are asked to take all the necessary measures regarding:

• Service continuity and personnel backup,

• Safe distance working rules,

• Potential increase in traffic due to social distancing, e-learning and remote work.

Operators are also required to report their list of personnel travelling intercity in compulsory circumstances. These lists are shared with the relevant governmental institutions if necessary. In order to provide uninterrupted mobile communications, municipalities are officially asked to provide access to network equipment and new facilities sealed due to license issues.

To meet increased communication needs and use of mobile broadband due to the Covid-19 outbreak, subscribers who use distance education services are provided a 6 GB or 8 GB quota monthly free of charge. Additionally, a number of other free packages offering increased quotas have been offered to citizens and some specialised workers, e.g. health workers. Regarding the use of fixed broadband, it is planned to extend the duration of the existing wholesale campaign in order to offer certain entry level packages for more reasonable prices for those who have not received internet service until now or who have cancelled packages at least 3 months ago.

To increase transmission capacity, BTK decided to allocate the radio frequencies to the operators who provided minimum set of information and to require additional information later.

In response to requests by operators, BTK postponed the due dates of obligatory periodical reports. Additionally, for corporate services such as rental circuit and metro ethernet internet, it has been made possible to suspend service at a wholesale level without any monthly fee.

To enable uninterrupted communication for consumers/operators, and prevent any unfair treatment, the following decisions are taken by the BTK Board:

• The incumbent operators offering wholesale services have been instructed to provide electronic communication services without interruption, to repair breakdowns quickly, and to take necessary measures to increase capacity if necessary, within the scope of all reference access and interconnection offers approved by BTK.

• Operators are obliged to take measures, where technically possible, to provide flexible working practices such as work from home or distance for call centre facilities.

• Operators are obliged to work on practices in favour of consumers such as providing discounted/free voice, message and data benefits, flexibility in bill payments without penalties.

• Operators may be exempt from sending printed bills on condition that bill information is provided to consumers via SMS or electronic mail.

• Besides using secure electronic signature for contracts through the e-Government Gateway, operators may use/promote alternative methods such as contracts from home without need for consumers to go to dealership offices.

In the field of digital security, measures are also taken by BTK and Ministry of Transport and Infrastructure due to increased risks during the pandemic. A number of security measures are determined and electronic communications operators have been informed of their responsibilities in order to provide business continuity, accessibility and protection of consumers. The security measures cover:

• Personnel and system backup procedures,

• Business continuity principles,

• Network management for high volume traffics,

• Customer services and dealership activities.

Continuity of distance education services are monitored and traffic related to service quality is reported to National Cyber Incidents Response Centre (USOM (TR-CERT)), which is operating 7/24 within BTK, daily.

Furthermore, malwares, phishing attacks and other cyber threats exploiting the trend of the COVID-19 subject are analysed by TR-CERT in coordination with over 1300 cyber incidents response teams (SOME). Command and control centres and malicious links of these cyber threats are determined and prevented in order to protect our citizens. Within this scope, cyber intelligence reports are prepared and shared with relevant parties.

Regarding safety of staff, in order to minimise contact among the staff and with citizens, the majority of the staff working in the BTK Headquarters, regional offices and call centres are permitted to work remotely and shifts with minimum numbers of staff have been planned to monitor physical documents and urgent cases at offices. In addition, all overseas assignments are suspended.

 United Kingdom, e-communications: Office of Communications (Ofcom)

Ofcom’s COVID-19 response is focusing on:

• Consumer protection, in particular for vulnerable consumers, which now includes those in self-isolation and businesses and tips for consumers to protect their broadband and mobile connection.

• Network resilience, working with providers to ensure continued service delivery as demand increases.

• A communications campaign against disinformation on the claimed linkages between 5G and coronavirus.

Ofcom has introduced a number of regulatory easements, many of which have not required changes to regulation, instead taking a pragmatic approach in the interpretation and application of regulations.

Consultation with stakeholders has intensified: Ofcom has held more roundtable meetings between the regulator, government and industry in the crisis period than in the preceding six months.

Ofcom has also collaborated with the Department for Digital, Culture, Media and Sport to agree on commitments for telecoms providers to protect vulnerable consumers during the crisis.

The regulator’s work programme has not fundamentally changed but is being re-phased to take account of internal resource constraints and external stakeholders’ limited ability to respond to consultations and to engage with the regulatory policy debate. New consultations and information requests that had been put on hold for a limited period in order to reduce regulatory burden, have been restarted after a period of suspension. Ofcom is carefully prioritising any new work.

 United Kingdom, energy: Office of Gas and Electricity Markets (Ofgem)

Ofgem’s core objectives in its response to Covid-19 have been ensuring protection of consumers, continuity of supply, and safety of the workforce and consumers. Ofgem’s response comprised two phases.

Initial responses sought to ensure customers were protected and security of supply maintained. This included issuing guidance to suppliers to make it clear it expects customer protection to be the first priority, and to provide information on issues like conditions for home visits.

Ofgem is involved in ongoing work to ensure domestic consumers – especially those in vulnerable situations – are supported, and Ofgem worked with the government and other organisations to deploy early interventions. For example, Ofgem supported the government in its March 2020 emergency package, which included agreed principles with energy suppliers to identify and prioritise consumers at risk, and to support financially impacted consumers and those on prepayment meters. Ofgem has also worked to allow up to GBP 10 million of the Energy Redress Scheme - administered by the Energy Savings Trust - funding to be prioritised for charities providing prepayment meter fuel vouchers.

Ofgem has said beyond the Covid-19 response, it will prioritise delivering its statutory obligations and progressing time-critical work, covering the period until 30 June 2020. (List of re-prioritised projects and work streams: https://www.ofgem.gov.uk/publications-and-updates/ofgem-information-energy-licensees-coronavirus-covid-19-response). The regulator informed industry that it will be pragmatic in its approach to compliance during this period, and companies should not be afraid to do the right thing for their customers. It has also balanced new requests for data reporting with more flexibility in timelines and deprioritising other data requests so as not to increase the overall burden.

Currently, all regulatory requirements remain in place for all licensees. Ofgem has published a framework on regulatory flexibility for its wholesale energy and retail suppliers that outlines expectations on networks/suppliers for what is high priority now and must be delivered, and what can be deprioritised if necessary. This includes changes to network price control processes to allow flexibility, for example on regulatory reporting deadlines, to enable network companies to focus on prioritising meeting customer needs, maintaining security of supply, and ensuring the safety and protection of their workforces. In this way, Ofgem has been able to adapt regulatory practices without issuing new regulations.

In the meantime, Ofgem continues to monitor the market closely and engage with stakeholders to understand if any other actions are needed.

In the second phase, Ofgem will continue to focus on the core objectives of its response to the pandemic by ensuring that companies are able to continue meeting customer needs, even as they adapt to some of the financial strains caused by the economic impact of the Covid-19 crisis.

The regulator will be taking action in three areas:

1. Network charge deferral: To mitigate short-term cash-flow challenges, Ofgem asked energy networks to develop a support scheme where they will consider requests from non-investment grade (smaller and medium sized) energy suppliers for flexibility on their network charges. This is intended to be focused, time-limited, and capped support for individual suppliers that need it, and don’t have access to other forms of finance. Ofgem set out in an open letter that it would expect suppliers to only access such schemes as a last resort, and it cannot be used by suppliers who have an investment grade credit rating and can therefore be reasonably expected to be able to access alternative sources of liquidity outside these schemes. Ofgem will monitor uptake carefully to mitigate the risk of abuse.

2. Raising standards as we move closer to a business as usual regulatory framework: As companies adjust to new working practices and the government eases some restrictions on lockdown, companies’ operational capacity will increase. The regulator expect companies to be ambitious in restoring normal standards of customer service and business-as-usual activities as quickly as possible. It will publish guidance setting out which regulatory requirements (temporarily eased in the wake of the crisis) are being re-introduced.

3. The price cap: Around 15 million households are protected by the default tariff and prepayment meter price cap. Ofgem updates the cap twice a year so that it reflects the underlying costs of supplying energy. There is a mechanism for bad debt costs within the price cap methodology; however, some suppliers have asked Ofgem to adjust for any potential increase in the future as a result of Covid-19. Ofgem published an open letter explaining that while it does not have sufficient evidence to justify this for the next 6-month price cap period starting in October, if in the future it sees a significant increase in these costs, Ofgem will take this into account.

 United Kingdom, transport: Office of Rail and Road (ORR)

The Office of Rail and Road (ORR) managed to ensure its own business continuity in response to the crisis, and its focus is on ensuring this business continuity for rail operators as well. It paused certain research and information requests, and indicated it would be more flexible in its enforcement of certain regulatory requirements, which it managed to do so within the framework of the existing legislation.

From its role to enforce competition law in the rail sector, the ORR took a more flexible approach to some instances of cooperation between businesses, in case this is necessary and appropriate to ensure the continuity of the delivery of services and maintain access for workers in critical sectors.

The ORR takes into account the effects on worker safety and vulnerable consumers due to the pandemic, and issued guidance on safe ways of travelling and operating transport services on its website.