The regulation of the public utilities sector has been practiced by the government to promote public interest in the context on non-competition. With the entry of new service providers, however, new forms of regulations are reconfigured to prepare the industry for a deregulated environment that will remain committed to promoting public welfare. In the Philippine electric industry, for instance, it has been observed that economic regulation is gradually evolving from a command-control type to one which is facilitative of competition. The circumstances surrounding this evolution and its prospective future are discussed in this article. The article reviews the changing patterns in regulation as well as the changing ownership profile of the electric industry. It is argued that the emerging nature of regulation is taking the right direction as it promotes competition, enhance the quality of service and makes the regulatory agency more responsive and effective.
