Document Type : Original Article
Authors
1
Assistant Professor, Department of Electricity and Energy Economics, Niroo Research Institute, Tehran, Iran.
2
PhD Student in International Oil and Gas Contract Management, Faculty of Islamic Studies and Economics, Imam Sadegh University, Tehran, Iran
10.22034/es.2026.567517.1920
Abstract
Governance in the energy sector consists of three levels: policymaking, management, and regulation. Despite a systematic view of these levels of energy governance in developed countries, in Iran, these matters have not had clear boundaries and designated custodians to follow up and implement the duties and responsibilities of each of the three levels of policymaking, management, and regulation. The Seventh Five-Year Development Plan of the Islamic Republic of Iran refers to the level of governance; in paragraph (a) of Article 43, the separation of governance duties from corporate governance in the energy sector is mentioned, in paragraph (e) of Article 48, the necessity of forming regulatory institutions is mentioned, and in paragraph (3) of paragraph (a) of Article 105, the strengthening of the role of the government in policy-making and regulation and the reduction of corporate governance is mentioned. This research was conducted based on a qualitative approach and documentary research method, and the findings of this research have suggested recommendations to policymakers and implementers in order to reform the country's energy governance structure based on the provisions of the Seventh Progress Plan in the field of three levels of governance. At the policy-making level, the Supreme Energy Council should be strengthened as the main trustee in the short term, and in the medium term, the basis for the formation of the Ministry of Energy should be prepared, and in the long term, the Ministry of Energy should be formed to carry out governance affairs. At the enterprise level, there should be a move towards centralizing executive affairs in companies, and in the short term, the secretary of the general assembly of state-owned companies and the person in charge of assemblies and state-owned companies should be transferred to the Ministry of Economy, in the medium term, there should be a change in the method of electing members of the boards of directors of state-owned companies and their assembly chairman, and in the long term, in order to concentrate government corporate governance in one institution, the Ministry of Finance should be separated from economic affairs and be responsible for state-owned companies. At the regulatory level, in the short term, independent regulators in a consulting capacity, in the medium term, independent sectoral regulators with an affiliated secretariat, and in the long term, independent sectoral regulators with an independent secretariat. Furthermore, the findings indicate that the success of energy governance reforms depends not only on legal and structural reforms but also on managing conflicts of interest, securing the engagement of key stakeholders, and addressing the institutional and political economy dimensions of the reform process.
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