Regulators and Operators trust each other more: Report


Posted on September 10, 2009  /  0 Comments

Levels of trust between utility regulators and operators around the world are improving, claims a survey, though the report also warns that trust remains a fragile commodity which can easily be broken. The report, produced by KPMG and EIU, examines the level of trust between regulators and operators across five utility sectors – telecoms, power, water, transport and post. Few key findings of this survey include:

  •  75 percent of regulators see themselves as strong performers regarding the consistency of their decisions and rulings. Only 30 percent of operators share that view.
  • A net 32 percent of regulators feel that trust between the two parties has improved in the past year whereas a net 18 percent of operators share that view.
  • Operators believe that the operator-regulator relationship works most poorly when it comes to resolving disputes with competing operators or regulating tariffs.
  • Both sides seem happiest with how the relationship works when it comes to issues such as licensing and monitoring / reporting on regulatory compliance.
  • Thirty-six percent of the 168 operators surveyed stated that regulatory uncertainty has had a direct, negative impact on their revenues. In addition, 30 percent claimed the same uncertainty had caused a cancellation or postponement of planned investment.

 Cellular News reports.

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