WET News

6 WET NEWS APRIL 2014 The UKRN is a new vehicle for co-operation that supports the separate independent regulatory frameworks of the individual regulators. The three main objectives of the new network are to improve the consistency of economic regulation across sectors, deliver efficiency of regulation, and identify scope to do better Regulators form new networking group • A new grouping of the chief executives of the UK's nine economic regulators, the UK Regulators Network, will enhance investment and efficiency for consumers. I f acronyms are your thing you will be pleased to learn that there is yet another one to add to the list, UKRN. It is not as pronounceable as Ofwat and easily confused with UKCN espe- cially because the membership of both is almost the same. UKCN, the UK Competition Network that was set up last year, is an alliance of UK sector regulators and the Competition and Markets Authority with the aim to "ensure the consistent and effective use of competition powers across all sectors". The UKCN "brings together" the Competition and Markets Authority with the Civil Aviation Authority, Financial Conduct Authority, Ofcom, Ofgem, Ofwat, Office of Rail Regulation and the Utility Regulator for Northern Ireland. This year's new network is the UK Regulators Network (UKRN). It also consists of the chief executives of the UK's nine economic regulators tasked with "improving coordination across regulated sectors to enhance investment and efficiency for the benefit of consumers". The UK Regulators' Net- work's members include the Water Services Regulation Authority (Ofwat), and the Water Industry Commission for Scot- land (WICS), but the latter par- ticipating only as an observer. "The government welcomes the creation of the UK Regulators' Network (UKRN), with its focus on key issues including facilitat- ing efficient multi-sector infra- structure investment projects and action on customer engagement and switching in regulated mar- kets," the government said in its Budget statement in March. The government intends to consult on whether further measures would support and embed the work of the UKRN." "The UKRN is a vehicle for co- operation that supports the sepa- rate independent regulatory frameworks of the individual regulators. It will allow regulators to work closer together on issues of cross-sectoral significance and to learn lessons across indus- tries which help to improve reg- ulation and the promotion of competition in order to secure better outcomes for consumers." The three main objectives of the new network are to improve the consistency of economic reg- ulation across sectors, and deliver efficiency of regulation. The UKRN will focus on "facilitating efficient multi-sec- tor investment projects, promot- ing customer engagement and switching in regulated markets, assessing cross-sector resilience and cyber-security and develop- ing a clear understanding of the overall affordability of regulated services for consumers," the net- work said. Cathryn Ross, chief executive at Ofwat said: "Independent, stable regulation has delivered a lot. In the water sector, there has been significant improvements in service while bills would be more than a third higher without our challenge on efficiency. It makes sense to look at where regulators can share expertise and take a joined-up strategic approach to deliver greater benefits for consumers. "I look forward to doing that through UKRN." Chairmanship of the UK Reg- ulators network will rotate on an annual basis, with the Office of Rail Regulation chief executive chairing until Spring 2015. Rich- ard Price, the inaugural chair of the group, chief executive of the UK Regulators network, said: "UKRN is an opportunity for regulators to build best practice and to identify ways to deliver greater benefits for the consum- ers they serve. "By sharing expertise and analysis across our regulated industries, we can get new insights and make sure there is a joined-up strategic approach which reduces regulatory bur- dens, gives investors greater confidence, and delivers better for consumers." Price said: "We have come together to build on these suc- cesses so that each of us, in our own sectors can raise the perfor- mance of independent regula- tion in promoting consumer interest, securing a stable envi- ronment for efficient investment and innovation and more effec- tive dialogue with government." It is hard not to become cyni- cal about yet another group of the groups. Although the noble aims of the new grouping cannot be dis- missed, the mechanism does seem overly elaborate given that it is not an unreasonable assumption that all regulators would be looking closely at each other for inspiration and more than willing to provide it. A few meetings of relevant people, and they would proba- bly be a little lower in the rank- ing than the chief executives, seems more than adequate to facilitate the knowledge exchange that yet another net- work is meant to achieve. "It makes sense to look at where regulators can share expertise and take a joined-up strategic approach to deliver greater benefits for consumers." Cathryn Ross, chief executive, Ofwat YOU SAY "By sharing expertise and analysis across our regulated industries, we can get new insights and make sure there is a joined-up stategic approach that reduces regulatory burdens..." Richard Price, UKRN chair "The government welcomes the creation of the UK Regulators' Network (UKRN), with its focus on key issues including facilitating efficient multi-sector infrastructure investment projects and action on customer engagement and switching in regulated markets," George Osborne's Budget statement "It makes sense to look at where regulators can share expertise and take a joined- up strategic approach to deliver greater benefits for consumers. I look forward to doing that through UKRN." Cathryn Ross, chief executive, Ofwat NEED TO KNOW The three main objectives of the new network: • Improve the consistency of economic regulation across sectors • Deliver efficiency of regulation • Improve understanding of how independent economic regulation works in the interests of consumers, markets, investment and economic performance News+

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