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Refining Regulatory Regimes

Utilities in Europe

Edited by David Coen and Adrienne Héritier

With regulation seeking to foster competition at the same time as also having to protect essential services, the authors investigate regulatory styles, costs of new regulatory functions and how firms in the new regulatory landscape access and influence regulatory authorities. The authors consider how EU pressures may hinder or help the functioning of new regulatory markets and the establishment of business–regulator relationships, as well as the broader policy implications for these new regulatory environments. The book also determines how regulatory authorities emerge and evolve under different state traditions and assesses, over time, the degree to which there is potential for convergence, divergence and continued differences as regulatory functions mature.
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Chapter 5: Managing Regulatory Developments in Rail: Compliance and Access Regulation in Germany and the UK

Adrienne Héritier


Adrienne Héritier INTRODUCTION In the last decade the industrial landscape and regulatory structures of the network industries such as telecommunications, energy and rail transport, have undergone a considerable transformation. Liberalisation has restructured the former natural monopoly sectors; new players with new preferences, such as new market entrants, have emerged. New regulatory institutions have been created to regulate the market at the national and the European levels to foster competition, and at the same time to compensate for the negative consequences of market integration in order to protect general interest services. This changed regulatory environment raises many important research questions such as: how do the new regulatory structures function? What is their impact on market creation and service provision (Héritier and Schmidt 2000)? In this chapter I focus on one specific aspect which has not yet been much analysed: how do firms in the rail sector interact with the newly created regulatory bodies at the national and European levels? And how do regulatory authorities deal with their new tasks vis-à-vis firms? I examine the interaction between the regulator and regulatee from two different systematic perspectives: first, by focusing on the attempts by firms and industrial associations to gain access to and influence regulation, that is their attempts to influence the regulators’ setting of rules for business at the national and the European levels, and secondly, by examining regulation that monitors behaviour and attempts to resolve disputes that arise in implementing the existing regulation at the national and European...

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