Regulation is everywhere
Module 4: Governance and Regulation in complex situation
Regulation is everywhere. But what does regulation mean when it comes to infastructures? There is not one overall framework but there are basically four tasks which deserve attention (based on OECD, 1999):
- Economic regulation: the key objective of economic regulation of infrastructure industries is to ensure the continuous supply, over the long-term, of specified infrastructure services. It also includes protection of competition, access regulation and adopting cost based measures to control monopoly pricing or otherwise ensuring adequate levels of consumer protection.
- Technical regulation: monitoring and enforcing standards to assure compatibility and quality and broader concerns.
- Safety, health and environmental issues: primarily focused on standards and protection.
- Periodic appraisal of the scope and degree of market power: in sectors where competition is being introduced with the aim of recommending whether such power justifies continuation of sector-specific competition law or regulations (other than technical regulation).
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