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Negotiated Settlements and Customer Engagement in UK Utility Regulation: Evidence from Airports, Water and Energy

Author

Listed:
  • Littlechild, S. C.
  • Bush, H.
  • Sutherland, A. D. A.
  • Knott, G.
  • Walker, A.

Abstract

Negotiated settlement has long been common in North American utility regulation but has played only a limited role in the United Kingdom. This paper looks at what can be learned from UK experience in airports, the Scottish water sector and energy networks, drawing in particular on presentations at a Cambridge seminar in March 2026. Airports show that direct bargaining can improve issue definition and customer focus even without full agreement. The Scottish water sector remains the clearest UK example of a near-negotiated settlement affecting the substance of the outcome. Energy networks have moved much further towards organised customer engagement than towards bargaining. The paper suggests that negotiated settlement deserves more serious attention in UK energy regulation where the issues are material, the parties are credible and the regulator can give the process real standing.

Suggested Citation

  • Littlechild, S. C. & Bush, H. & Sutherland, A. D. A. & Knott, G. & Walker, A., 2026. "Negotiated Settlements and Customer Engagement in UK Utility Regulation: Evidence from Airports, Water and Energy," Cambridge Working Papers in Economics 2669, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:2669
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    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General

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