Common appellate authorities for related sectors may become a reality soon. However, there is no likelihood of the government going in for common regulators for the transport and energy sectors.
The government is also likely to shoot down a proposal that seeks a common regulator for networks like telecommunications, gas pipelines, power transmission lines and railways as they all deal with access issues.
Officials said the government had dropped plans to have a common regulator for the railways, ports and shipping and the road sectors since they faced specific issues and user charges were also different.
As a result, a separate regulator for the roads sector will be in place shortly, with the mandate to set levies for road stretches. A regulatory set-up for the port sector is also being reviewed.
"The appellate authorities can be expanded to include members with expertise in specific areas. For instance, a common authority on energy can have separate persons handling the petroleum and power sectors," said an official.
The job of the government should be restricted to laying down of policy, while the regulatory structure has to be adequately free of government intervention. This will ensure that private entrants are not discriminated against, in case there is a clash of interest between the public and private sectors.
"The government should not be allowed to overturn the decisions of regulators. If required, the government can change the relevant policy, so that it is in line with what is thought to be desirable, but decisions should not be tampered with," the official added.
The government is also reportedly favourably disposed to the idea of having a dedicated cadre for regulators. "At least, the secretariat with the regulator should comprise a set of dedicated employees with long-term employment opportunities," said the official.
A proposal for deputation has, however, been opposed as there is a possibility of getting biased decisions.
"A regulator, which is likely to gain employment or re-employment with a company, is more likely to give decisions favourable to it," he clarified. Also, to ensure the independence of regulators, they should not be made dependent on the government for funds.
Regulators need their own resources for generating revenues. There, however, is a case for not allowing them to determine, for instance, the licensing fees which companies have to pay, the official said.
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