Regulatory authorities around the world are facing many challenges and had to explore different options and approaches to regulation to maximise incentive and efficiency, Australian Competition and Consumer Commission Chairman, Professor Allan Fels, said in Sydney today.
"As a regulator the Commission does not have unfettered discretion, but is bound by codes and other legislative requirements," he said. "However, over all the industries the Commission regulates the objectives are the same. That is, to develop a regulatory process which eliminates monopoly pricing, provides a fair risk adjusted return to network owners, and creates incentives for managers to pursue ongoing efficiency gains through cost reductions".
Professor Fels was opening the two-day Incentive Regulation and Overseas Developments Conference which has drawn delegates and speakers from Australia, the United States and the United Kingdom.
Speakers include Ms Clare Spottiswoode, from PA Consulting Group; Professor Sanford Berg, Public Utility Research Centre, University of Florida; Mr Sam Lovick, Director, London Economics; and Dr Joseph Farrell, University of California, Berkeley, formerly Chief Economist, Federal Communications Commission.
The themes of the conference will be highlighted by Ms Caroline Varley, Head of Energy Diversification Division, International Energy Agency, who will give the introductory address.
The conference will discuss developments in best practice regulation including the changing face of United States regulation and 'incentive regulation' in the UK and Australia. It will also concentrate on specific industry issues such as promoting competition in gas supply through upstream reform; benchmarking and regulation in the electricity industry; 'unbundling' the local loop in telecommunications and the experience of price caps in airport regulation.
The conference is being presented by the ACCC in conjunction with the University of Melbourne and the Australian National University.
Professor Fels said that he believed regulation was an "evolving science" with Australia still in its infancy and learning from the US and the UK.
"Given the head start that the US and the UK have over Australian regulation, it is important that the key advantages and disadvantages of these different approaches be identified in the pursuit of best practice regulation".
The conference is being held at the Holiday Inn, Coogee Beach today (Thursday, 18 November 1999) and tomorrow (Friday, 19 November 1999).
"As a regulator the Commission does not have unfettered discretion, but is bound by codes and other legislative requirements," he said. "However, over all the industries the Commission regulates the objectives are the same. That is, to develop a regulatory process which eliminates monopoly pricing, provides a fair risk adjusted return to network owners, and creates incentives for managers to pursue ongoing efficiency gains through cost reductions".
Professor Fels was opening the two-day Incentive Regulation and Overseas Developments Conference which has drawn delegates and speakers from Australia, the United States and the United Kingdom.
Speakers include Ms Clare Spottiswoode, from PA Consulting Group; Professor Sanford Berg, Public Utility Research Centre, University of Florida; Mr Sam Lovick, Director, London Economics; and Dr Joseph Farrell, University of California, Berkeley, formerly Chief Economist, Federal Communications Commission.
The themes of the conference will be highlighted by Ms Caroline Varley, Head of Energy Diversification Division, International Energy Agency, who will give the introductory address.
The conference will discuss developments in best practice regulation including the changing face of United States regulation and 'incentive regulation' in the UK and Australia. It will also concentrate on specific industry issues such as promoting competition in gas supply through upstream reform; benchmarking and regulation in the electricity industry; 'unbundling' the local loop in telecommunications and the experience of price caps in airport regulation.
The conference is being presented by the ACCC in conjunction with the University of Melbourne and the Australian National University.
Professor Fels said that he believed regulation was an "evolving science" with Australia still in its infancy and learning from the US and the UK.
"Given the head start that the US and the UK have over Australian regulation, it is important that the key advantages and disadvantages of these different approaches be identified in the pursuit of best practice regulation".
The conference is being held at the Holiday Inn, Coogee Beach today (Thursday, 18 November 1999) and tomorrow (Friday, 19 November 1999).