How to Become an Independent Agency: The Creation of the German Federal Network Agency

Abstract

The German Federal Network Agency (FNA) was established in 2005 as multi-utilities regulator thereby creating Germany's first energy regulator. It maintains a quite exceptional position in the landscape of German agencies because of its far-reaching independence from political influence. This independence represents an empirical puzzle, because in Germany no comprehensive agencification of the federal administration can be observed and independent agencies are rather an exception than a rule. This article explores whether this puzzle can be plausibly solved by the approach of institutional isomorphism. It argues that the German government faced informal pressure from the European Commission and its endeavour to build a network of European energy regulators at the European level. Furthermore, independent regulatory agencies increasingly became a kind of guiding model in the utilities sector. Therefore, mechanisms of coercive and mimetic isomorphism can be seen as plausible explanations of the agency's independence.