ABSTRACT
This chapter explains the relations between legislatures and regulatory authorities in both the European Union (EU) and the United States (US). It focuses on the role of both private and public investments in gas infrastructure. In view of the desired levels of security of supply and servicing new energy resources, other parts of the continent, most notably central and eastern Europe, have significantly less developed gas systems. In the US gas system, it has been argued that there are no reasons for concerns about investment in gas infrastructure. Energy regulation is part of a broader policy area, and includes issues such as safety, security of supply and sustainability. In an attempt to quantify the energy policy goals, efficiency is examined by looking at what rates of return regulatory authorities allow gas infrastructure operators to make. The approach of both legislature and regulatory authorities in the US is more market-oriented than the approach in the EU.
