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30 years of British utility regulation: Developing country experience and outlook

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  • Gassner, Katharina
  • Pushak, Nataliya

Abstract

This article examines the impact the UK regulatory model has had in developing and transition countries in the three decades since its inception. It presents data linked to three key features of the model, namely independent regulatory institutions; focus on competition; and greater efficiency in service delivery through incentive-based regulation. The difficulty of formulating statements valid for a very diverse set of countries is acknowledged. Nevertheless, the article argues that despite of the rapid spread of regulatory agencies across the world, the UK regulatory model has been only partially successful in middle- and low-income countries. The main explanation offered is that the ‘de-politization’ of regulatory institutions is more challenging to achieve in a context of below cost-recovery tariffs and continued state-ownership of utilities. But improving the technical soundness of decision making and introducing accountability for operators are key tasks that regulators can address even if the gap to the UK ideal remains in a number of countries.

Suggested Citation

  • Gassner, Katharina & Pushak, Nataliya, 2014. "30 years of British utility regulation: Developing country experience and outlook," Utilities Policy, Elsevier, vol. 31(C), pages 44-51.
  • Handle: RePEc:eee:juipol:v:31:y:2014:i:c:p:44-51
    DOI: 10.1016/j.jup.2014.09.003
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Salvador Bertomeu & Daniel Camos-Daurella & Antonio Estache, 2017. "Do Private Water Utilities Operators Care about Regulatory Agencies in Developing Countries ?," Working Papers ECARES ECARES 2017-18, ULB -- Universite Libre de Bruxelles.
    2. Lodge, Martin & Stern, Jon, 2014. "British utility regulation: Consolidation, existential angst, or fiasco?," Utilities Policy, Elsevier, vol. 31(C), pages 146-151.
    3. Pedro J. Zarco-Periñán & José L. Martínez-Ramos & Fco. Javier Zarco-Soto, 2021. "On the Remuneration to Electrical Utilities and Budgetary Allocation for Substation Maintenance Management," Sustainability, MDPI, vol. 13(18), pages 1-15, September.
    4. Estrin, Saul & Pelletier, Adeline, 2018. "Privatization in developing countries: what are the lessons of recent experience?," LSE Research Online Documents on Economics 87348, London School of Economics and Political Science, LSE Library.
    5. Whittington, Dale & Thomas, Duncan Andrew, 2023. "Teaching Water and Sanitation Economics and Policy with a Focus on Low- and Middle-Income Countries," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 5(3), September.
    6. Jensen, Olivia & Wu, Xun, 2017. "The hybrid model for economic regulation of water utilities: Mission impossible?," Utilities Policy, Elsevier, vol. 48(C), pages 122-131.
    7. Benedetto, Valerio & Smith, Andrew S.J. & Nash, Chris A., 2017. "Evaluating the roles and powers of rail regulatory bodies in Europe: A survey-based approach," Transport Policy, Elsevier, vol. 59(C), pages 116-123.
    8. Estrin, Saul & Pelletier, Adeline, 2016. "Privatisation in Developing Countries: What Are the Lessons of Recent Experience?," IZA Discussion Papers 10297, Institute of Labor Economics (IZA).
    9. Heims, Eva M. & Lodge, Martin, 2018. "Customer engagement in UK water regulation: towards a collaborative regulatory state?," LSE Research Online Documents on Economics 87258, London School of Economics and Political Science, LSE Library.
    10. Bertoméu-Sánchez, Salvador & Camos, Daniel & Estache, Antonio, 2018. "Do economic regulatory agencies matter to private-sector involvement in water utilities in developing countries?," Utilities Policy, Elsevier, vol. 50(C), pages 153-163.

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    More about this item

    Keywords

    Infrastructure regulation; Developing countries; Stephen Littlechild; Incentive regulation;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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