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18.09.2015

Management trap: who and how will implement energy strategy?

 

Central executive authorities are formed by a principle created by an unknown person, and each government makes this puzzle even more complicated. Let’s take, for example, authorities in the energy sector: we have at least the Ministry of Energy and Coal Industry, the Ministry of Regional Development, partly the Ministry of Economy and certainly the State Agency for Energy Efficiency and Energy Saving. It has been considered for a long time that the Ministry of Energy and Coal Industry is responsible for generation issues, the State Agency for Energy Efficiency and Energy Saving cares for consumption, the Ministry of Regional Development – for public utilities. However, this division clearly demonstrates that initiatives developed by one of the authorities may not be consistent with other authorities’ areas of responsibility, says Anton Antonenko, an expert of the Dixi Group Think Tank.

 

According to the expert, the architects of the power structure have provided an answer to this question in the project approval procedure for government decisions before their consideration by the Cabinet of Ministers. But it turns out that the initiator has to wait for a long time and go and beg for initiative approval.

“For example, the State Agency for Energy Efficiency and Energy Saving has initiated a draft decision of the government (final or draft law). It refers to the Ministry of Regional Development, which includes the State Agency for Energy Efficiency and Energy Saving. Next, it undergoes the approval procedure. Everyone who experienced that, can predict the outcome: instead of a few days, it takes weeks, the Ministry of Finance deletes from the project any references to budget financing, the rest also express their concerns. After a month or two, such ‘shred’, with any luck, reaches the Cabinet of Ministers, which, if inconsistencies between the ministries remained, may return it for finalisation. What will be the result? Lost time, shred initiative, from the original of which just a piece is left, and a lot of human efforts. Some legends are doing the rounds within the authorities telling that certain draft laws undergo the approval procedure for years, because every new head of an authority who must approve them, wants to see something of his/her own in the draft law”, he stressed.

According to the expert, it is not enough to write down an energy strategy of the country. One must clearly understand who and how will implement the same, and how the mechanisms will work. You need to go through the whole chain of logistics as the most qualified managers, already at the development stage being aware of possible bottlenecks and their location.

 

Anton Antonenko
Vice President of the DiXi Group

Our platforms

https://ksep.energy/en/

Independent energy educational center

http://eiti.org.ua/

National website of Extractive Industries Transparensy Initiative in Ukraine 

http://ua-energy.org/

Information and analitical website “Ukrainian Energy UA-Energy.org” is unique   platform to inform

Our platforms

https://ksep.energy/en/

Independent energy educational center

http://eiti.org.ua/

National website of Extractive Industries Transparensy Initiative in Ukraine 

http://ua-energy.org/

Information and analitical website “Ukrainian Energy UA-Energy.org” is unique   platform to inform