ABSTRACT
This paper’s objective is to derive from UK experience of regulating privatized utilities the conditions most conducive to effective regulation. The particular UK context has referred both to a particular form of price control, RPI—X, and to privately owned utilities. My aim is to emphasize the basic elements in this experience which apply whatever the precise form of control or ownership adopted. I also address the fact that a regulator’s tasks are, as in ACCC’s case, basically two-fold, the control of charges which stem from a utility’s position as supplier of services not subject to serious competitive challenge (the pipes and wires) and control of competitive conduct using those services (competition to sell over the pipes and wires). I will call these the ‘non-contestable’ and the ‘contestable’ activities respectively.
