The Norwegian Ministry of Petroleum and Energy commissioned Oslo Economics to evaluate The Norwegian Water Resources and Energy Directorate’s (NVE) commercial hydrological services. Our task was to assess the effects the commercial hydrological services has on NVE’s achievement of objectives, authority roles and administrative/core assignments, as well as what effect it may have on competition in the market and the provision of hydrological services. The purpose of the project was to gain more knowledge about the advantages and disadvantages of NVE’s commercial hydrological services and to provide recommendations for any improvement measures.
We conclude that the commercial activities have greater advantages than disadvantages in all the various service areas, which benefits both the administration and the rest of society. The commercial activities increase NVE’s ability to carry out its administrative/core tasks and authority roles, and thus fulfil its goals. At the same time, NVE’s presence in the markets helps to ensure availability of demanded services, and that these are delivered with higher quality and at lower prices. The disadvantages that are largely related to potential role conflicts are not large enough to outweigh the benefits of the business. All in all, NVE’s hydrological mission activities have positive effects on the administration and society.
Read more about the evaluation at The Norwegian Ministry of Petroleum and Energy’s webpages. Read the full report here (in Norwegian).
