7. Monitoring Arrangements
This Final Certification Report assumes that the three new SOEs will act independently. ERTU considers that the three companies will act independently when they are established. However, because of their common ownership, it would be desirable for the Government to take steps to protect this independence. Confidentiality of information in the current market environment with the rapid changes in the level of vertical integration is obviously very important to achieve the desired competition outcome. Therefore, these steps should include:
- ensuring the SOE Boards include directors with considerable experience and expertise in managing sound commercial relationships between companies and their owners;
- ensuring there is an appropriate level of disaggregation of monitoring arrangements; and
- continuing the practice of having the Minister of Energy separate from the SOE ownership Ministers.
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