Water Knowledge Center
10 Reasons Why …
Public Utilities Should Be Regulated
Water professionals involved in regulation talked about what their work has taught them about regulation. Here are their thoughts on why regulation should extend to public utilities.
- A regulator will act as a proxy competitor, forcing the utility to operate efficiently
- A regulator can motivate a utility to act on consumer complaints
- A regulator can be blamed, instead of politicians, if tariffs are raised
- A regulator can prevent monopoly abuse
- A regulator can act as a referee between a frustrated public and defensive utility
- A regulator motivates utilities to conduct themselves professionally and upgrading their skills in order to present sound reasoning and defend their operations to the regulator
- A regulator can ensure utility sustainability
- A regulator creates employment
- A regulator can ensure that utilities make good on their promises, such as better service levels
- A regulator can set realistic limits to ambitious goals of utilities, while at the same time expand the public’s sustainability horizon further than 3 months at a time
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