Indirect Regulatory Capture, Regulator and the Utility in Electricity Sector


J. G. L. S. Jayawardena, U. Anura Kumara, M. A. K. Sriyalatha

Abstract


This paper discussed the two cases of the regulatory decisions of the electricity sector regulator of Sri Lanka on renewable energy tariff calculation and approval of long term generation Expansion plan. The objectives of the analysis of the case studies are to examine how does utility can react on the regulatory decisions in the monopolistic market and whether it leads to a situation of Indirect Regulatory Capture. The regulatory process is examined from the perspective of various interest groups over the time, using Public Interest theory and Interest Group theory. The two cases are shown to have been strongly influenced by the interests of the different stakeholders of the electricity sector themselves, indicating a degree of 'regulatory capture'. The relationship of the utility and the regulator has been increasingly challenged by external pressures, interests of the stakeholders, and by, the level of resistance of the monopolistic utility.  The paper concludes that in the monopolistic electricity market regulators decision can be reversed if the Utility is strong enough to resist the regulators decision if not favorable for the public or the utilities’ interest.

Keywords


Sector regulation, Regulatory capture, Public interest theory, Interest group theory, Ceylon electricity board, public utilities commission, Renewable energy generation.

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About this article

Title

Indirect Regulatory Capture, Regulator and the Utility in Electricity Sector

Keywords

Sector regulation, Regulatory capture, Public interest theory, Interest group theory, Ceylon electricity board, public utilities commission, Renewable energy generation.

DOI

10.20448/journal.507.2018.41.10.21

Date

2018-11-29

Additional Links

Manuscript Submission

Journal

Asian Bulletin of Energy Economics and Technology
Vol 4, No 1 (2018) Page: 10-21

Print ISSN

2518-0142

Online ISSN

2313-819X

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Authors & Affiliations

J. G. L. S. Jayawardena
University of Sri Jayewardenepura, Sri Lanka
Sri Lanka

U. Anura Kumara
University of Sri Jayewardenepura
Sri Lanka

M. A. K. Sriyalatha
University of Sri Jayewardenepura
Sri Lanka


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Asian Bulletin of Energy Economics and Technology
Online ISSN: 2313-819X | Print ISSN: 2518-0142

 

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