The Governance Of Regulators Being An Independent Regulator
2016 / English / PDF
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Regulators operate in a complex environment at the interface among
public authorities, the private sector and end-users. As “referees”
of the markets that provide water, energy, transport,
communications, and financial services to citizens, they must
balance competing wants and needs from different actors. This means
that they must behave and act objectively, impartially, and
consistently, without conflict of interest, bias or undue influence
- in other words, independently. What distinguishes an independent
regulator is not simply institutional design. Independence is also
about finding the right balance between the appropriate and undue
influence that can be exercised through the regulators' daily
interactions with ministries, regulated industries and end-users.
This report identifies the critical points where undue influence
can be exercised at different moments in the life of a regulator
and discusses some of the avenues for developing a culture of
independence, including through interactions with stakeholders,
staffing and financing.
Regulators operate in a complex environment at the interface among
public authorities, the private sector and end-users. As “referees”
of the markets that provide water, energy, transport,
communications, and financial services to citizens, they must
balance competing wants and needs from different actors. This means
that they must behave and act objectively, impartially, and
consistently, without conflict of interest, bias or undue influence
- in other words, independently. What distinguishes an independent
regulator is not simply institutional design. Independence is also
about finding the right balance between the appropriate and undue
influence that can be exercised through the regulators' daily
interactions with ministries, regulated industries and end-users.
This report identifies the critical points where undue influence
can be exercised at different moments in the life of a regulator
and discusses some of the avenues for developing a culture of
independence, including through interactions with stakeholders,
staffing and financing.
