Definition
RME (Reguleringsmyndigheten for energi - the Norwegian Energy Regulatory Authority) is an independent regulatory authority subordinate to NVENorway's Directorate of Water Resources and Energy - regulates the electricity and water resources sectors., responsible for regulating grid operations and the energy market in Norway. RME sets revenue caps for distribution system operators, approves grid tariffsFees charged by grid companies for electricity transport, regulated by the regulatory authority under the revenue cap system., and supervises compliance with market rules. The separation between NVE and RME was introduced in 2019 as a consequence of the EU's Third Energy Market Package, which requires regulatory authorities to be independent of both government and industry actors. RME is Norway's contribution to the European network of regulators ACEREU's energy regulator - coordinates national regulators and sets common rules for the power market. (Agency for the Cooperation of Energy Regulators). For actors in the power market, RME's decisions on tariffs and network regulation are directly determinative of the operating framework.