Being an Independent Regulator
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.
Published on July 19, 2016
In series:The Governance of Regulatorsview more titles