Economic Regulation of Utility Industries

Kodwani, Devendra (2000). Economic Regulation of Utility Industries. Economic & Political Weekly, 35(30) pp. 2657–2661.

URL: http://www.epw.org.in

Abstract

This paper addresses some important issues of regulatory institutions in India. The regulators should be chosen for their economic and technical understanding of the respective sectors. They should function as an agent for the government and the consumers of the regulated utility. The pros and cons of the rate of return and price cap regulation are discussed in this article, and it is argued that price cap regulation deserves careful consideration in the debate in India.

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