How should Utilities be Regulated? Introduction The utility sector includes telecommunications, energy and water supply. Utilities usually operate as regulated local monopolies. The question that arises is why and how the industries that produce these goods and services are regulated?. “Do the regulations work in the public interest or do they serve special interests – the interests – of particular groups of consumers or producers?” . A. The Scope for Regulation The Cost Of Monopoly When market price …showed first 75 words of 1694 total…

…showed last 75 words of 1694 total…and price-cap, will better protect the interest of the consumers, as well as the investment of the investors. It is believed that the introduction and creation of competition authority can also provide better checks and balances on government’s regulatory power. The answer therefore is not found by regulation, it is rather found through a balanced approach of deregulation, introduction of specific competition and price laws which to protect both the consumer and the producer.