André Mendonça advocates efficient regulation based on technical expertise

Minister believes that adequate regulation stimulates the growth of the sector, promotes greater competition and increases the participation of companies

The Minister of the Federal Supreme Court (STF), André Mendonça, highlighted that good regulation must be based on clear parameters and meet two major objectives: encouraging the development of the regulated economic sector and protecting the rights of users. Mendonça gave a keynote speech after the opening ceremony of the Sul Export Forum, on Monday night (28).

The minister stated that adequate regulation stimulates the growth of the sector, promotes greater competition, increases the participation of companies and boosts investments — both private and public. “Good regulation encourages development and growth in the sector. There should be greater competition, more companies involved, investment by the sector, the investment itself, and also public investment,” he stated.

The minister also stressed that, at the same time, it is essential to ensure the protection of service users. “When I look at the infrastructure sector, the focus is on its growth, but also on the sector’s users,” he reinforced.

When addressing the importance of regulatory bodies, he was categorical: “I assume technical expertise. A good regulator needs to know the sector. A bad regulator does not know the reality of the sector.” For him, there is a considerable risk when regulatory agencies are occupied by managers without in-depth knowledge of the area.

“I need to have as directors and agency advisors people who have the know-how in that area. Who know the needs of the sector and the users,” he explained, arguing that agencies should give technical depth to more general standards, such as the Constitution and laws issued by the National Congress.

According to him, these rules must be followed so that the sector has “legal certainty for all parties involved, directly or indirectly impacted by a given regulation,” he said. And when listing the various requirements that make up good regulation, he mentioned cleaning up rules that contradict each other, that is, regulations that cancel each other out. “In addition, it is necessary to create rules that can be complied with and not requirements that are intangible,” he concluded.