Economic Regulation
Why is TIPS interested in economic regulation of infrastructure utilities?
The infrastructure utilities referred to here encompass mainly the energy, telecommunications, transport and water utilities. These utilities provide services that are of an essential nature for economic development and growth. Government historically used to play a dominant role in these industries. However, as was the trend globally a reduced role of Government in these industries was foreseen. So, where government has been involved in the provision of utility services as well as in the regulation thereof the picture has started to change with the introduction of independent economic regulation and a move towards competition and privatisation (even though this has not progressed in any significant manner). The role of independent economic regulators can be summarised simplistically as the protection of consumers on the one hand and creation of an enabling investor environment on the other hand while implementing government's policy objectives. It can therefore be stated that economic regulation has an effect on everyone's lives and all inhabitants of a country needs to be aware of decisions taken by these entities.
Hence, regulation is supposed to be a means to an end. The end is better sector performance. An independent economic regulator is therefore established with the objective of playing the role of a "guard". It is here that TIPS sees a gap, namely "who is guarding the guards?" Certain legislation does require performance appraisals at some points in time, but there is a need to gauge on a continuous basis what the performance of regulators of these industries are and whether they are executing their mandates in an effective (doing what they're supposed to do) and efficient (at least cost) manner. TIPS wants to play a monitoring role and at the same time be a source of information so that all stakeholders are aware of the impact of regulation and what their rights are in this whole picture.
Economic Regulation Structure in South Africa
Media Publications on Issues Affecting Economic Regulation
Relevant Papers
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