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Price-cap Regulation
Price-cap regulation is a form of incentive regulation capping the prices that firms in a natural monopoly position may charge their customers. Designed in the 1980s by UK Treasury economist Stephen Littlechild, it has been applied to all privatised British network utilities. It is contrasted with both rate-of-return regulation, with utilities being permitted a set rate of return on capital, and with revenue-cap regulation, with total revenue being the regulated variable. Functioning Price-cap regulation adjusts the operator's prices according to * the price cap index that reflects the overall rate of inflation in the economy, * the ability of the operator to gain efficiencies relative to the average firm in the economy, and * the inflation in the operator's input prices relative to the average firm in the economy. Revenue cap regulation attempts to do the same thing but for revenue, rather than prices. [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Regulation
Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. For example: * in government, typically regulation (or its plural) refers to the delegated legislation which is adopted to enforce primary legislation; including Land-use planning, land-use regulation * in economy: regulatory economics * in finance: financial regulation * in business, industry self-regulation occurs through self-regulatory organizations and trade associations which allow industries to set and enforce rules with less government involvement; and, * in biology, gene regulation and metabolic regulation allow living organisms to adapt to their environment and maintain homeostasis; * in psychology, self-regulation theory is the study of how individuals regulate their thoughts and behaviors to reach goals. Forms Regulation in the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Telecommunications Industry
The telecommunications industry within the sector of information and communication technology comprises all telecommunication/ telephone companies and Internet service providers, and plays a crucial role in the evolution of mobile communications and the information society. Telephone calls continue to be the industry's largest revenue generator, but due to advances in network technology, telecom today is less about voice and increasingly about text ( messaging, email) and images (e.g. video streaming). High-speed Internet access for computer-based data applications such as broadband information services and interactive entertainment is pervasive. Digital subscriber line (DSL) is the main broadband telecom technology. The fastest growth comes from (value-added) services delivered over mobile networks. Insight Research projected that telecommunications services revenue worldwide would grow from $2.2 trillion in 2015 to $2.4 trillion in 2019. Market segmentation Of all ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Failure
In neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient, often leading to a net loss of economic value.Paul Krugman and Robin Wells Krugman, Robin Wells (2006). ''Economics'', New York, Worth Publishers. The first known use of the term by economists was in 1958,Francis M. Bator (1958). "The Anatomy of Market Failure," ''Quarterly Journal of Economics'', 72(3) pp351–379(press +). but the concept has been traced back to the Victorian writers John Stuart Mill and Henry Sidgwick.Steven G. Medema (2007). "The Hesitant Hand: Mill, Sidgwick, and the Evolution of the Theory of Market Failure," ''History of Political Economy'', 39(3)pp. 331��358. 200Online Working Paper. Market failures are often associated with public goods, time-inconsistent preferences, Information asymmetry, information asymmetries, Market structure, failures of competition, principal–agent problems, externalities,Jean-Jacques L ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Regulatory Agency
A regulatory agency (regulatory body, regulator) or independent agency (independent regulatory agency) is a government agency, government authority that is responsible for exercising autonomous jurisdiction over some area of human activity in a licensing and regulation, regulating capacity. Examples of responsibilities include strengthening safety and standards, and/or to protect consumers in markets where there is a Imperfect competition, lack of effective competition. Examples of regulatory agencies that enforce standards include the Food and Drug Administration in the United States and the Medicines and Healthcare products Regulatory Agency in the United Kingdom; and, in the case of Regulatory economics, economic regulation, the Office of Gas and Electricity Markets and the Telecom Regulatory Authority of India, Telecom Regulatory Authority in India. Legislative basis Regulatory agencies deal in the areas of administrative law, regulatory law, primary and secondary legislatio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Regulation
Regulatory economics is the application of law by government or regulatory agencies for various economics-related purposes, including remedying market failure, protecting the environment and economic management. Regulation Regulation is generally defined as legislation imposed by a government on individuals and private sector firms in order to regulate and modify economic behaviors. Conflict can occur between public services and commercial procedures (e.g. maximizing profit), the interests of the people using these services (see market failure), and also the interests of those not directly involved in transactions ( externalities). Most governments, therefore, have some form of control or regulation to manage these possible conflicts. The ideal goal of economic regulation is to ensure the delivery of a safe and appropriate service, while not discouraging the effective functioning and development of businesses. For example, in most countries, regulation controls the sale and co ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ofwat
The Water Services Regulation Authority, or Ofwat, is a non-ministerial government department and body responsible for the economic regulation of the privatised water and sewerage industry in England and Wales. Ofwat's main statutory duties include protecting the interests of consumers, securing the long-term resilience of water supply and wastewater systems, and ensuring that companies carry out their functions and are able to finance them. Ofwat primarily sets limits on the prices charged for water and sewerage services, taking into account proposed capital investment schemes (such as building new wastewater treatment works) and expected operational efficiency gains. The most recent review was carried out in 2019; reviews are carried out every five years, with the next due to take place in December 2024. The Water Act 2014 extended retail competition to all non-household customers of English water companies from April 2017 and provided for possible future competition in whole ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Office Of Rail And Road
The Office of Rail and Road (ORR) is a non-ministerial government department responsible for the economic and safety regulation of Britain's railways, and the economic monitoring of National Highways. ORR regulates Network Rail by setting its activities and funding requirements for each Control Period, ensuring train operators have fair access to the railway network, and enforcing compliance with its network licence. ORR also regulates High Speed 1, the Channel Tunnel, and also acts as the appeal body, controls the network statement and monitors the competitive situation of rail services in Northern Ireland. It is the competition authority for the railways and enforces consumer protection law in relation to the railways. From April 2015, ORR assumed responsibility for monitoring National Highways' management of the strategic road network – the motorways and main 'A' roads in England – and advising the Secretary of State for Transport on the levels of funding and perform ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ofcom
The Office of Communications, commonly known as Ofcom, is the government-approved regulatory and competition authority for the broadcasting, internet, telecommunications and mail, postal industries of the United Kingdom. Ofcom has wide-ranging powers across the television, radio, telecoms, internet and postal sectors. It has a statutory duty to represent the interests of citizens and consumers by promoting competition and protecting the public from harmful or offensive material. Some of the main areas Ofcom regulates are TV and radio standards, broadband and phones, video-sharing platforms online, the wireless spectrum and postal services. The regulator was initially established by the (c. 11) and received its full authority from the Communications Act 2003 (c. 21). History On 20 June 2001, the Queen's Speech to the Parliament of the United Kingdom, UK Parliament announced the creation of Ofcom. The new body, which was to replace several existing authorities, was concei ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Civil Aviation Authority (United Kingdom)
The Civil Aviation Authority (CAA) is the statutory corporation which oversees and regulates all aspects of civil aviation in the United Kingdom. Its areas of responsibility include: * Supervising the issuing of pilots and aircraft engineers licences, testing of equipment, calibrating of navaids, and many other inspections (Civil Aviation Flying Unit). * Managing the regulation of security standards, including vetting of all personnel in the aviation industry (Directorate of Aviation Security). * Overseeing the national protection scheme for customers abroad in the event of a travel company failure ( Air Travel Organisers' Licensing – ATOL). The CAA is a public corporation of the Department for Transport, liaising with the government via the Standards Group of the Cabinet Office. Responsibilities The CAA directly or indirectly regulates all aspects of aviation in the UK. In some aspects of aviation it is the primary regulator. The UK government requires that the CAA's cos ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Federal Communications Commission
The Federal Communications Commission (FCC) is an independent agency of the United States government that regulates communications by radio, television, wire, internet, wi-fi, satellite, and cable across the United States. The FCC maintains jurisdiction over the areas of broadband access, fair competition, radio frequency use, media responsibility, public safety, and homeland security. The FCC was established pursuant to the Communications Act of 1934 to replace the radio regulation functions of the previous Federal Radio Commission. The FCC took over wire communication regulation from the Interstate Commerce Commission. The FCC's mandated jurisdiction covers the 50 states, the District of Columbia, and the territories of the United States. The FCC also provides varied degrees of cooperation, oversight, and leadership for similar communications bodies in other countries in North America. The FCC is funded entirely by regulatory fees. It has an estimated fiscal-2022 budg ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Local Exchange Carrier
Local exchange carrier (LEC) is a regulatory term in telecommunications for the local telephone company. In the United States, wireline telephone companies are divided into two large categories: long-distance ( interexchange carrier, or IXCs) and local (local exchange carrier, or LECs). This structure is a result of 1984 divestiture of then-regulated monopoly carrier American Telephone & Telegraph. Local telephone companies at the time of the divestiture are also known as Incumbent Local Exchange Carriers (ILEC). The divestiture created local exchange carriers for the management of local telephone lines and switches, and provisioning of local phone services within their business area, as well as the long-distance calls originating or terminating in their business area. The vast majority of the United States are served by LECs called Baby Bells, or RBOCs (Regional Bell Operating Companies). The rest of the United States, most commonly in rural or outlying suburban areas, are ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ofgem
The Office of Gas and Electricity Markets (Ofgem) is the government regulator for the electricity and downstream natural gas markets in Great Britain. It was formed by the merger of the Office of Electricity Regulation (OFFER) and Office of Gas Supply (Ofgas). Ofgem's governing body is the Gas and Electricity Markets Authority (GEMA), which is also referred to as the Ofgem board. Powers and duties The authority's powers and duties are largely provided for in statute (such as the Gas Act 1986, the Electricity Act 1989, the Utilities Act 2000, the Competition Act 1998, the Enterprise Act 2002 and the Energy Act 2004, the Energy Act 2008 and the Energy Act 2010) as well as arising from directly effective European Union legislation. Duties and functions concerning gas are set out in the Gas Act and those relating to electricity are set out in the Electricity Act. Its primary duty is to protect the interests of consumers, where possible by promoting competition. The Authorit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
