| The Politics of Regulation |
|
The European Policy Forum, an independent international research
institute, commissioned Keith Boyfield to write a study analysing
the growing regulatory burden on utilities.
To gain a clear understanding of the problems, a programme of
face to face interviews was organised with the key players concerned.
Interviews were conducted with senior executives in the regulated
utilities, the utility regulators themselves, the chairman of
the Competition Commission, politicians and civil servants including
Treasury officials, investment bankers, lawyers and leading academics.
This research revealed deep concern about the excessive level
of regulatory intervention in the UK utility sector, which was
felt to hinder innovation and entrepreneurial flair. Those interviewed
were also worried about the lack of regulatory checks and balances.
In our final report, entitled The Politics of Regulation, a series
of radical recommendations were made on how to address these concerns.
The study triggered widespread media interest including a front
page article in the Financial Times, and feature articles in The
Evening Standard, Financial Times, Daily Telegraph and Wall Street
Journal Europe.
"This study by Keith Boyfield made a real and noticeable
impact on government policy making", observes Dr Jon Bird,
Director of External Affairs at Northern Electric.
The Forum's report prompted the Treasury to commission a review
of utility regulators and their budgets. In a separate initiative,
the Cabinet Office's Better Regulation Task Force undertook a
review of utility regulators.
The recommendations contained in the report mirrored those set
out in The Politics of Regulation. "The level of regulatory
bureaucracy remains too high - exacerbated by the introduction
of environmental and social obligations to the remit of the regulator",
remarked Lord Haskins.
"The European Policy Forum has done us all a service by
highlighting in a pamphlet called The Politics of Regulation the
huge surge the cost of those appointed by government to keep a
watch on the privatised utilities…The Government should give
serious consideration to the author's proposal to merge the regulators
into a Competition Commission", commented Anthony Hilton,
City Editor of The Evening Standard.
