In October 2018, the government asked the Commission to conduct a new study into regulation of the UK’s energy, telecoms and water industries.
The Commission’s study examined what future changes will affect the regulated sectors, and how to ensure the necessary levels of investment and innovation while keeping critical services affordable for everyone.
The study explored regulatory consistency and how government and regulators work together. It considered the full range of potential implications of changes, paying particular attention to the need to keep bills affordable and to ensure vulnerable customers are protected.
A call for evidence supported the study, submissions for which were open until April 2019.
The study’s final report, Strategic investment and public confidence, found that the UK’s model of regulation for energy, water and telecoms has generated significant investment over the past decades, but that the system is increasingly facing new challenges that it was not designed to address. It sets out how regulators, industry and government must adapt to face the coming challenges of achieving net zero, adapting to changing weather patterns, and increasing digitalisation.
Strategic investment and public confidence
The study’s final report suggests how the UK’s regulatory system must adapt to meet the demands of the future and secure the strategic investment needed in the energy, water and telecoms sectors to reduce emissions, improve digital connectivity and build resilience to floods and drought.
Adaptive regulation, market risk and the cost of capital