Enhancing Effective Regulation of Infastructure and Utility Services
The document discusses effective regulation of infrastructure and utility services. It states that effective regulation is needed to support economic growth, encourage development for the poor, and promote sustainable infrastructure through the efficient delivery of quality services and lower tariff rates. The regulatory framework should include both regulatory governance, such as the design and decision making process, and regulatory substance like decisions on tariffs, quality, and social obligations. While some countries saw success through regulatory reforms like establishing independent regulators and lowering tariffs, others faced challenges of slow implementation, regulators not being fully independent, and higher tariffs. There is a need to evaluate regulatory reforms to improve infrastructure services in developing countries.
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Enhancing Effective Regulation of Infastructure and Utility Services
- 1. Enhancing Effective Regulation of Infrastructure and Utility Services Hamid Sharif Assistant General Counsel Office of the General Counsel Regulatory Forum on Clean Energy, Good Governance, and Regulation 16 - 18 Mar 2008, Singapore
- 2. Infrastructure Development Delivery of basic services Supports economic growth Encourages pro-poor development Promotes sustainable infrastructure
- 3. Effective regulation is needed for improved infrastructure development Efficient delivery of quality infrastructure and utility services Lower tariffs rates Attractive investment opportunity
- 4. Regulatory Framework Regulatory governance Regulatory substance
- 5. Regulatory Governance The “how” of regulation, this includes: design of regulatory system institutional arrangements process of decision making
- 6. Regulatory Substance The “what” of regulation, this includes: decisions on tariffs quality accounting investment social obligations
- 7. Regulatory Framework Formal aspects : laws, regulations, rules, structures, and tariff-setting Informal attributes : how the formal aspects work in practice
- 8. Obstacles to Effective Regulation Information asymmetry Market failure Political capture Weak capacity Ineffective consumer participation
- 9. Actors and Beneficiaries of Regulatory Reform Policy makers Investors Consumers Environment Other stakeholders
- 10. Good governance is key to effective regulation Clarity of roles and objectives Autonomy Participation Autonomy Transparency Predictability Non-discrimination Proportionality Requisite powers Appropriate institutional characteristics Integrity
- 11. Regulatory Reform Experience Singapore: Electricity Act 2001 Malaysia: Energy Commission Act 2001 Philippines: Electric Power Industry Reform Act 2002 Indonesia: Electricity Reform Law 2002 (overturned by Constitutional Courts)
- 12. Reforms had mixed results Legal and policy reforms Establishment of an independent regulator Lower tariff rates More investors Slow implementation of laws Regulator not fully independent Higher tariffs Lack of investors
- 13. There is a need to evaluate regulatory reform to improve infrastructure and utility services in developing countries.
- 14. Output Identification of successes and obstacles to effective infrastructure regulation Establishment of ASEAN regulatory forum
- 15. Benefits Best practices identified Develop sustainable practices Improved design of regulatory framework Improve operational procedures for more cost efficient and socially responsible outcomes
- 16. For More Information Hamid Sharif [email_address] www.adb.org