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While the CMA agrees that there is a reason to keep a non competitive allocation a possibility and bilateral negotiations between DECC and the parties may be the only way of securing investment in these projects the too big leeway for DECC in it gives rise to potential anticompetitive effects in the future as well. CMA proposed that DECC should carry out and disclose a clear and thorough assessment of the impact of any proposal to use its powers to allocate CfDs outside a competitive process at two stages: when negotiations start and about to be submitted to the EU Commission for approval. This might lead to improved decision making and also transparency on the decision making process. Overall, CMAs soft remedies will only work if DECC and its successor complies with the broader spirit of CMAs remedial action. Just as some respondents to CMAs consultation I tend to be sceptic about the change these soft recommendations will lead to. The other issues where CMA did not identify AESs were: the gas wholesale market in general, and in the electricity wholesale market the self dispatch system, reforms to imbalance prices and the Capacity Market. In this third post I would like to complete my previous two posts Regulations role in the Uber vs taxi war, and Deregulating taxi pricing?with another statements of a very good recent Harvard Business Review article. In We Dont Need a Whole New Regulatory Regime for Platforms Like Uber and Airbnb Robert Haslehurst and Alan Lewis argue in line with Rafi Mohammed the author of the Uber articles. They all take the position that these businesses have not redefined industries in a fundamental way and they have more similarities than differences with traditional businesses, and should be regulated accordingly. Rafi Mohammeds conclusion is to deregulate the taxi industry and let competition decide whether taxi companies are up for the challenge to innovate which they have the potential for. At the same time the author duo concludes that some regulation is needed because of consumer protection and employee safety, but the regulation should treat service providers the same way.
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