Smart grid is no longer a question of if but of when and how. Energy utilities are heading towards smart grid implementation to provide new services to customers and improve their business performance. However, there are facing many challenges, majority of which results from poor regulations and insufficient business models. The key objective of this market insight is to give an overview of the regulatory framework for smart grid development in the European Union and Russia. The insight covers main drivers and restraints for ICT implementation in energy utilities and presents foreseen development directions. It provides a comparative overview of selected countries and their progress towards smart grid implementation.