The impact of UK and EU government policy related to the role of regulators & infastructure

Role of regulators

Industries enforcement can be carried out by industry or sectoral regulators. These sectors include: gas and electricity (Ofgem), communication and postal services (Ofcom), railways (ORR), air traffic (CAA), water and sewage (Ofwat)

Regulators are appointed by the government. The role of regulators for industries where a few large firms dominate the market usually involves: 

• monitoring and regulating prices: regulators aim to ensure that companies do not exploit their monopoly power by charging excessive prices. 
• Maintaing high standards of customer services: companies that fail to meet specified service standards can be fined or have their license taken away. Regulators may also require that unprofitable services are maintained because of wider puiblic interest. 
• Opening up markets to competitve forces: regulators are required to encourage competiton by removing barriers to entry to their sectors. 

Infrastructure

Infrastructure is the the basic physical and organizational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or enterprise. Infrastrcutre spending can have…