What is the rate regulation?

Rate regulation is a government activity in which the government or representatives of the government regulates rates charged to consumers. This practice is designed to protect consumers from excessive or disproportionate rates to ensure that the basic rates are set at low costs to be accessible to low -income people and prevent or determine prices between companies charging their services. The rate regulation can be achieved by local, state or federal agencies in different ways. In these industries, the schedule of the rate of reviews are subject to government representatives who can determine whether rates are fair or whether rates meet the standards set by the government. Companies that violate the standards of rate regulation may be fined.

In addition to determining basic prices, Rerulations of Services also includes rare regulation. For example, in the regulation of the wiring industry rates, the government may determine that people who are charged the base rate must have access to itLess two local cable stations to allow cable subscribers to access emergency information and coverage local events that can be important to know about. Likewise, the regulators can determine what should be considered as "basic coverage" for consumers who pay the minimum insurance rate so that people who buy basic insurance have a level of coverage.

This practice should not discourage competition or tell companies how much they can charge for their services. Within the framework of the Regulation on the rate, there is a high flexibility that allows companies to decide on the types of services they want to offer, how their services should be graded and how many customers should be wandered for their services. Rate control also tends to focus on basic services, which means that higher levels of services are not subject to regulation and consumers are alone.

ifThe consumer feels that the interaction with the industry, subject to rate regulation, may violate government standards, the company can report and request an investigation. The process of this differs from the nation to the nation; Contacting a local elected clerk is often the best way to start because the official can provide assistance and recommendations to the right government office. People can find out who their local election officials are checking the phone book, which often has a complete list or contacting the town hall or similar government agencies.