An independent Regulator is a body that has a distinct legal mandate to regulate the power sector and function autonomously of any other public or private entity. It has the legal functionality, budgetary autonomy, human and financial resources, and independent management to effectively regulate the power sector. It should be the neutral implementer of the government’s energy strategy and policy. In addition to being independent, a modern Regulator must be transparent and accountable.

The Regulator should be accountable for its budget and performance to the parliament or supreme legislative authority. Its proceedings, regulations, and other workings should be open to public scrutiny. Stakeholders should have input into the agency’s regulatory decisions and decision-making process, and the behavior of its officials should be open to scrutiny. These measures will ensure efficiency, competition, transparency, and accountability in the market.