Supplementary memorandum by energywatch
energywatch supports the call for the establishment
of a Regulation Select Committee (RSC). We believe that a RSC
would provide a more transparent, focused and effective method
of regulating the economic regulators.
What would the Regulation Select Committee be
The RSC would be appointed to examine on behalf
of Government the expenditure, administration and policy of the
economic regulators. Ofgem, the regulator of the gas and electricity
markets, would be defined as one of the economic regulators.
The RSC would play an important role in bringing
the economic regulators to account over their decision making
processes and policy setting. The RSC would, for example, consider
the rationale for and constituency of each of the economic regulators
The RSC would also look at cosistency between
the approaches adopted by each of the ecomomic regulators and
would try to promote best practice across them. Where appropriate
the RSC could develop and promote a set of commmon principles,
for example relating to consumer benefits.
In scrutinising the economic regulators, the
RSK may draw on the expertise of other established bodies. For
example the National Audit Office (NAO) cold support the RSC in
its scrutiny of the expenditure of the economic regulators or
the Better Regulation Taskforce could support the RSC in its promotion
of best practice.
From time to time, the RSC would report on the
outcome of its investigations and set out its key recommendations.
The RSC would continue to monitor the work of the economic regulators
to ensure that its key recommendations have been implemented.
30 May 2003