The fact sheets present summarized information on key energy sector governance challenges, state of electricity sector liberalisation, financial ratios of leading energy companies and progress of energy acquis implementation. The data is based on the SELDI Regional Energy Governance and State Capture Assessment Report (2016), the European Energy Community Progress Report (2015) and the Progress Report on the Implementation of the Energy Acquis of the European Energy Community (2015). The SELDI Regional Energy Governance and State Capture Assessment Report, as well as the current fact sheets, aims at providing the first detailed comparative assessment of national energy governance deficits and state capture risks in the Western Balkans and Turkey. The most recent policy literature on governance tries to define this concept in a more grounded and measureable manner by referring to social allocation outcomes. In other words, whether the norm in the distribution of public resources is impartial and universal or if it tends to skew towards private, particularistic interests. The authors note that anticorruption policies in any sector have to be viewed as part of the larger governance context whereby the aims should be to reduce the opportunities and resources – such as discretionary power and material resources – for corrupt behaviour to occur and increase legal, as well as normative deterrents.
The energy sector holds specific socio-economic power that is exposed to almost self-explanatory corruption risks. However, determining the occurrence or actual appearance of corruption in public procurement and public institutions in this sector poses significant challenges. In addition to being one of the most vital economic sectors, energy is also one of the least transparent. Of particular concern are also the energy security challenges for SEE: excessive dependence on energy imports; reliance on a limited number of energy suppliers; high energy poverty levels; unsustainable energy intensity and demand; and persistent energy governance risks. The corporate governance of state-owned enterprises (SOEs) is characterized by political meddling in the day-to-day operations; non-transparent staffing procedures; prevalent political affiliations; conflicts of interest; and limited management transparency and accountability. CSOs and governments should look for several red flags: unfavorable financial indicators of SOEs, debts, and public procurements that prioritize a single company, especially in the construction of sometimes unnecessary infrastructure.
Examining the existence and nature of particularistic practices in energy sector governance requires an understanding of the wider organizational setting in implementing different aspects of the state-owned energy enterprise (SOEs) management, and knowledge on the institutional framework dealing with the integrity and accountability of public procurement actors.