[GrittySam]

One of the key issues facing the new institutions of Regulatory affairs is that they are being established is the definition of the concept of independence. The two main elements essential for establishing regulatory independence of Regulatory affairs agencies are:

• Insulation from improper influence
• Development and application of technical expertise

Improper influence can arise not only from the regulated entities or consumers but also from the Government - especially if the government is a stakeholder in the sector that is being regulated. On the other hand, it needs to be recognized that no Regulatory affairs institution can be completely insulated from the political structure. It is the political structure that determines the overall policy guidelines within which regulatory institutions would operate. At the same time, new policy guidelines must keep in mind the spirit of legislation creating new regulatory institutions.

The other facet of a regulator’s independence, which relates to the development and application of technical expertise, is closely linked to the degree of flexibility that is provided to Regulatory affairs agencies. A Regulatory affairs agency should be empowered to determine the type and level of expertise required and the price at which such expertise would be available to the agency. This, in turn, is dependent on the extent of financial autonomy that has been provided to the regulatory affairs agency.