Legal Framework and Institutional Arrangements

The existence of a strong legal framework is one of the most important prerequisites for establishing a sound national statistical system in general and a national system of energy statistics in particular [IRES, Ch. VII, para. 7.2, PDF p. 100, 2018].

Legal framework

The legal framework is provided by statistical laws and other applicable national laws and regulations that, to different degrees, specify the rights and responsibilities of entities that collect data, provide data, produce statistics or use statistical outputs. Data obtained through statistical surveys depend on statistical laws and energy-related legislation, while data on imports and exports of energy are subject to customs laws and regulations [IRES, Ch. VII, para. 7.2, PDF p. 100, 2018].

Establishing a legal framework that makes reporting of energy data mandatory through well-designed channels and instruments is of great importance to compiling high-quality energy statistics. Although many countries lack such a framework, it should be recognized as the preferred option. Under it, energy ministries or agencies maintain administrative records relevant to energy statistics, while national statistical offices organize data collection from entities producing energy products (as a primary or secondary activity) and from energy users. The legal framework should not only enable efficient data collection but also deal adequately with confidentiality issues, protecting data reporters [IRES, Ch. VII, para. 7.3, PDF p. 100, 2018].

The legal framework should describe responsibilities for the collection, compilation and maintenance of different data components among different government bodies, taking into account the variety of public policy objectives and the difficulties that market liberalization brings — growing numbers of participants in energy industries and commercial sensitivities around data disclosure in an increasingly competitive market [IRES, Ch. VII, para. 7.4, PDF p. 100, 2018].

Recommendation (7.5): it is recommended that, whenever appropriate, national agencies responsible for compiling and disseminating energy statistics actively participate in discussions on national statistical legislation or relevant administrative regulations, to establish a solid foundation for high-quality and timely energy statistics — with a view to mandatory reporting, whenever appropriate, and adequate protection of confidentiality. Such participation also strengthens the agencies' responsiveness to the data requirements and priorities of the user community [IRES, Ch. VII, para. 7.5, PDF p. 101, 2018] — recommendations tracker row VII/7.5.

See Official Statistics for the broader UN Fundamental Principles of Official Statistics that this legal-framework discussion sits within, and Statistical Confidentiality for Chapter X’s dedicated treatment of confidentiality [IRES, Ch. VII, para. 7.3, PDF p. 100, 2018].

Institutional arrangements

A legal framework creates a necessary, but not sufficient, foundation for energy statistics. Establishing appropriate institutional arrangements among all relevant governmental agencies is of paramount importance for collecting and compiling statistics effectively [IRES, Ch. VII, para. 7.6, PDF p. 101, 2018].

The national system of energy statistics

A national system of energy statistics consists of the various governmental agencies engaged in the collection, compilation and dissemination of energy statistics. Its most important members are national statistical offices and specialized governmental agencies responsible for implementing energy policies (e.g., energy ministries). However, the complex and vast nature of energy supply and use, and the liberalization of energy markets in many countries, have increased the number of governmental agencies and other organizations collecting and maintaining energy data — chambers of commerce, industry associations, regional offices, etc. This represents a great potential for reducing response burden and improving timeliness, but also poses great challenges for harmonizing data, since the underlying concepts, definitions, methods and quality assurance applied by different agencies might vary significantly [IRES, Ch. VII, para. 7.7, PDF p. 101, 2018].

Purposes of institutional arrangements

To function efficiently, a national system of energy statistics should rest on appropriate institutional arrangements among the relevant agencies. Such arrangements should allow for the collection, compilation, standardization and integration of information scattered among different entities, and for dissemination of the compiled statistics through a coherently networked information system or central energy database. They should also promote harmonization with international standards and recommendations. Efficient institutional arrangements minimize data collection cost for the agencies involved — avoiding duplication of work and enabling sharing of good practices — and reduce response burden on data reporters through improved communication and coordination among collectors [IRES, Ch. VII, para. 7.8, PDF p. 101, 2018].

Governance and coordination mechanism

A key element of institutional arrangements is establishing a clear, efficient and sustainable system of governance for the national system of energy statistics. Depending on a country’s legislation and other national considerations, various agencies might lead the system and hold responsibility for official energy statistics — national statistical offices, an energy ministry or agency, or another specialized governmental agency. It is imperative that the lead agency ensure the necessary coordination of work, producing energy statistics that comply with the quality standards described in IRES Chapter X [IRES, Ch. VII, para. 7.9, PDF p. 101, 2018].

Recommendation (7.10): to guarantee the successful functioning of a national system of energy statistics, it is vital that all stakeholders be actively involved. It is recommended that countries develop an appropriate interagency coordination mechanism that, while taking into account existing legal constraints, would systematically monitor performance of the national system, motivate members to actively participate, develop recommendations focused on improving the system’s functioning, and have the authority to implement such recommendations. Such a mechanism should address statistical capacity, since lack of funding and human resources is a persistent problem in many countries — proper allocation of responsibilities and joint training courses/workshops can help [IRES, Ch. VII, para. 7.10, PDF p. 101, 2018] — recommendations tracker row VII/7.10.

Centralized vs. decentralized models

Models for organizing a national system of energy statistics vary from a centralized system, in which one institution is in charge of the whole statistical process (collection, compilation and dissemination), to a decentralized system, in which several institutions are involved and responsible for different parts of the process or different components of energy statistics [IRES, Ch. VII, para. 7.11, PDF p. 102, 2018].

Traits of effective institutional arrangements

Different institutional arrangements — depending on a country’s government structure, legal framework and other national considerations — can all result in high-quality energy statistics, provided the overall national system follows internationally accepted methodological guidelines, utilizes all available statistical sources, and applies appropriate data collection, compilation and dissemination procedures. Effective institutional arrangements are usually characterized by three traits [IRES, Ch. VII, para. 7.12, PDF p. 102, 2018]:

(a) The designation of only one agency responsible for disseminating official energy statistics or, if that is not possible, the identification of agencies responsible for disseminating specific data subsets plus mechanisms ensuring overall consistency of energy statistics [IRES, Ch. VII, para. 7.12(a), PDF p. 102, 2018];

(b) A clear definition of the rights and responsibilities of all agencies involved in data collection and compilation [IRES, Ch. VII, para. 7.12(b), PDF p. 102, 2018];

(c) The establishment of formalized working arrangements between them, including agreements on holding inter-agency working meetings and on access to relevant microdata collected by those agencies — complemented by informal agreements among the agencies as required [IRES, Ch. VII, para. 7.12(c), PDF p. 102, 2018].

Recommendation (7.13): it is recommended that countries consider the establishment of the institutional arrangements necessary to ensure the collection and compilation of high-quality energy statistics as a matter of high priority, and periodically review their effectiveness [IRES, Ch. VII, para. 7.13, PDF p. 102, 2018] — recommendations tracker row VII/7.13.

Whatever the institutional arrangement, the national agency with overall responsibility for compiling energy statistics should periodically review the definitions, methods and the statistics themselves to ensure they comply with relevant international recommendations and recognized best practices, are of high quality, and are available to users in a timely fashion. If no such agency is designated, an appropriate mechanism should be put in place to ensure those functions are performed consistently and effectively [IRES, Ch. VII, para. 7.14, PDF p. 102, 2018].

Related pages

Legal framework and institutional arrangements set the preconditions for the data-collection strategy work covered in Energy Data Reporter Groups and Scope and Frequency of Data Collection: “the collection of energy data can be a complex and costly process, which very much depends on a country’s needs and circumstances, including the legal framework and institutional arrangements” [IRES, Ch. VII, para. 7.15, PDF p. 102, 2018].