A better deal for consumers and an attractive environment for investors: How the UK’s economic regulators are developing the use of regulatory and competition powers

Price, Richard and Ross, Cathryn (2014): A better deal for consumers and an attractive environment for investors: How the UK’s economic regulators are developing the use of regulatory and competition powers. Published in:

Abstract

There are great expectations in the UK for infrastructure and its role in delivering for customers and society, promoting efficiency and economic growth. These expectations are matched by an ambitious forward programme of investments in renewal and expansion of network capacity and quality across sectors, in some cases backed by the government and in others by private investors. Economic regulation and competition have a big role to play in aligning the interests of investors with the interests of customers and society. Specifically, in relation to investors, economic regulation and competition help to ensure investment is efficient, with the right investment taking place the right place, at the right time and at efficient cost. In this context, regulatory coherence and stability has rarely been so important. 2 In this paper we discuss • the relationship between competition and regulation, and the way regulators use their powers; • the importance of independent regulation in helping to ensure the delivery of what customers and society need, want and can afford from regulated sectors, particularly against a background of major investments in UK infrastructure; • how economic regulation needs to learn and evolve if it is to continue to help ensure delivery of what customers and society expect, given that regulated sectors and the environment in which they operate change over time; and • how the regulators are working together to maximise the benefits from coordination or read across between sectors.

• Item Type: MPRA Paper
• Language: English
• Keywords: regulation utilities networks competition
• Subjects: L - Industrial Organization > L4 - Antitrust Issues and Policies > L43 - Legal Monopolies and Regulation or Deregulation; L - Industrial Organization > L5 - Regulation and Industrial Policy; L - Industrial Organization > L5 - Regulation and Industrial Policy > L51 - Economics of Regulation; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L90 - General; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L91 - Transportation: General; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L92 - Railroads and Other Surface Transportation; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L93 - Air Transportation; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L94 - Electric Utilities; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L95 - Gas Utilities ; Pipelines ; Water Utilities; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L96 - Telecommunications; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L97 - Utilities: General; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L98 - Government Policy

References

HM Treasury: National Infrastructure Plan 2013; December 2013

Amelia Fletcher: Privatisation, economic regulation and competition in the utilities: Have we got the balance right?; Beesley Lecture Series, 14 November 2013

Global Competition Review: ‘The painful birth of el super regulador’, 17 December 2013.

Department for Business, Innovation and Skills: ‘Principles for economic regulation’, April 2011.

Hannah Brown, Sue Connaughton and Richard Price: Globalisation and the UK: Specialisation, place and prosperity in global markets; Evidence on policies to enhance and spread the gains from international trade through productivity growth and local specialisation (HM Treasury, 2005)

Nabarro LLP: Nabarro Infrastructure Index - Attracting Investment

World Economic Forum: Global Competitiveness Report 2013-2014

Competition and Markets Authority: ‘Baseline’ annual report on concurrency (April 2014), and archived websites of the Office for Fair Trading and the Competition Commission.