Revisiting the Regulatory State: A Multidisciplinary Review Establishing a New Research Agenda

Abstract

This paper provides a comprehensive literature review of the 'Regulatory State' through the lens of utility regulation. The review is multidisciplinary with it bringing together the insights available from the political science, economics, legal and management science literatures. It is clear that while the term 'Regulatory State' is essentially missing from the economics literature a vast array of economics papers provide valuable insights for debates about the Regulatory State within political science. In addition to reviewing the existing literature, the paper identifies opportunities for future research. The literature is grouped into five topics: (i) Consumers, (ii) Courts, (iii) Ideas, Experts and Expertise, (iv) Governance and (v) Assessing Regulator Performance. Apart from (iv), we believe all of these areas have been under-researched in relative terms. In particular, a key finding is that compared to the information available on Public Utility Commissioners in US States, very little information has been collated on the background, characteristics and careers of individual utility regulators working within Europe.

The Active Energy Consumer in EU Law

“…For large corporate customers these justifications for regulatory protection are absent. 90 Second, the distinction between consumers and customers is crucial in assessing the performance of the Regulatory State. 91 Consumers not only have a role in steering the objectives of regulation, but the way their behaviour is conceived determines the extent to which regulation is required and the form that regulation should take.…”

“…92 The benefits of competition and the liberalisation of wholesale markets may be clearer for corporate customers 93 than for final consumers. 94 Accordingly, realising policy objectives may be dependent on particular behaviours by consumers. 95 The normative concept of the consumer in regulated markets has historically been based on the concept used in industrial economic theory.…”

Introduction

“…Not surprisingly, the concept of complete state ownership is characterized by full state control of industries. See Deller and Vantaggiato (2015) for a comprehensive survey of the legal and economic literature. It should be noticed that there is also an extensive political science literature on the regulatory state: see Majone (1994).…”