The mandate and competences of the regulatory authority as well as its relationship with government and other market players depend on the delegation of powers by the state. The degree of delegation of such powers is determined by the political tradition of the country and on the political will to create an independent and competent regulatory authority. These factors influence the specific responsibilities, authority, and accountability for the performance of the regulator’s specific activities.
Although complete “independence” is nearly impossible to attain, the regulator should have sufficient independence to implement regulations and policies without undue interference from interested parties such as politicians or other government agencies (functional independence). The institutional regulations put in place by laws and regulations as well as the administrative structure of the regulatory authority are critical to ensure such independence. The degree of independence differs considerably from country to country.