THE NEED FOR A REGULATORY CHARTER

Abstract

There has been growing concern about the accountability and procedural safeguards surrounding the economic regulation in privatised utility industries (telecommunications, gas, airports, water and electricity). In the paper, the source of the problems is identified as the overreliance on the discretion of regulators, the absence of consistent and strong procedural protection which would ensure that decisions are explained, and weak and highly ambiguous channels of accountability. The arm's length relationship between government and industry following privatisation has made regulation more adversarial and personalised. In order to deal with this new situation, more formal procedures are required which limit regulators' powers and discretion, increase procedural safeguards, and formalise and strengthen the system of checks and balances which operate on regulators. A positive set of proposals which satisfy these requirements is set out by the author.