Man in suit on staircase
Sydney harbour birdseye
Summary

IPART engaged Cambridge Economic Policy Associates (CEPA) to review Australian and international practice of incentive-based regulation (i.e. CPI-X regulation). The purpose was to enhance our understanding of issues and developments in practical approaches to incentive regulation and to identify approaches from which IPART might learn. The CEPA report concludes, overall, that IPART’s current approach to regulating entities appears appropriate to the types of entities it regulates, but highlights interesting examples of regulatory practice elsewhere that IPART could monitor or further examine in future. These will be taken into account in IPART’s ongoing work. CEPA’s report draws on a range of case studies of regulatory practice and regimes in Australia and overseas. It is a useful resource for regulators and other interested persons on current approaches to incentive-based regulation and the ‘state of play’ on key regulatory issues.