Utility Regulators : Decisionmaking Structures, Resources, and Start-Up Strategy

Abstract

The design of a regulatory agency's
 decisionmaking structure encompasses issues relating to the
 number of decisionmakers, the basis for selecting them, the
 role played by stakeholders, and the regulatory and appeals
 processes. The selection of the regulator is
 critical--especially in countries that have yet to establish
 a reputation for competence and reliability. When agencies
 are to be independent, the goal should be to select
 regulators with the personal qualities needed to exercise
 independent judgement and resist improper pressures. An
 appeals process is also important to ensure that the
 regulator does not stray from its mandate and that it
 remains accountable. The author outlines good practice.