Regulation and Competition in Infrastructure Industries: Lessons from Experience of Turkey

Competitive structures in infrastructure sectors are essential to promote both sustainable growth and social welfare. In our paper, after establishing this argument, by reviewing Turkish experience, we suggest that a co-existence of independent regulation and competition authority is necessary to make utilities industries competitive. However, the borders between jurisdictions of two independent authorities should be clearly drawn, leaving competitive oversight to the area of competition authority. In addition, dispute resolution mechanisms should be established between two bodies and government should take the role of endorsing competition in these industries in the long-run. We also provide instances that promotion of competition in these industries was hindered in Turkey because of the lack of these mechanisms