Regulators seen as too bureaucratic

The task force examined industry watchdogs

A government task force has criticised the level of bureaucracy involved in the regulation of utilities.

The independent Better Regulation Task Force, which was founded in September 1997 to advise government on regulatory issues, has found that the regulators' mode of operating is virtually unworkable.

We would like to see a reduction in the culture of bureaucracy and game-playing between government, regulators and companies

Lord Haskins

"We would like to see a reduction in the culture of bureaucracy and game-playing between government, regulators and companies with a move to a more market-driven culture based on greater transparency, accountability and competitiveness," said Lord Haskins, who chairs the task force.

The inquiry looked in detail at the telecoms, energy and aviation regulators, although Lord Haskins said the task force's report could be applied to most industry watchdogs

Overburdened

Lord Haskins, a Labour peer and chairman of Northern Foods, also said that the regulators were overburdened with environmental and social criteria used to determine pricing and investment.

Lord Haskins accused the regulators and industry of game playing

This had led to a "muddle" that was easy to manipulate, said Lord Haskins.

He added that the complexity of the system had left consumers confused.

David Edmonds, the telecoms regulator, came under particular attack.

"Investors are unhappy, competitors are frustrated, the regulator is at odds with the industry, and everyone, including the public, is confused," Lord Haskins said.

Privatisation

On a more positive note, the task force said that the privatisation of the utilities had proved broadly successful.

"Although we make a number of suggestions on how to make the regulation of utilities more transparent, accountable and user-friendly, we broadly feel that the privatised utilities are providing greater customer satisfaction than when they were nationalised."