Best Answer

Government regulates business for several reasons. First is public safety and welfare. Many industries are regularly reviewed and overseen because their activities, if they go awry, can have significantly harmful effects to human health, financial well-being, or community structure.

The second reason is protection of industry. Many regulations are in place to protect those who have developed their business correctly; licensing, permits, and inspections by the government weed out undesirables or criminal activities that undercut honest industries.

The third reason is revenue generation. Many programs require certification or licensing that businesses must pay for in order to operate. The funds collected go to pay for the government programs that perform the oversight of the particular industry. However, in many cases, some portion of revenue is also sidetracked to general government purposes and is, effectively, a tax.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why does the government regulate utility companies?
Write your answer...
Still have questions?
magnify glass
Related questions

Should the government continue to regulate utility companies?


What federal government organization was used to regulate railroads telephone and telegraph companies?

Interstate Commerce Commission was formed by the federal government to regulate railroad, telephone, and telegraph companies.

Who financed electricity?

Electricity is a utility and was made available by the government in conjunction with companies.

Is a water bill considered a utility bill?

yes. Water companies are overseen by state utility regulators. They are utility companies. The water bill, therefore is a utility bill.

Which companies offer jobs in utility computing?

"Utility computing is packaging computing resources. Some companies that offer jobs in utility computing are SAVVIS, Sunpower, Sunguard, and Ciber. This is just a sample of the companies offering utility computing jobs."

What government agency regulates life insurance companies?

The Department of Insurance; they regulate all insurance bought or sold in the state.

The progressive movement supported the idea does the federal government should?

The progressive movement supported the idea that the federal government should allow the companies to exist but regulate them for the public interest.

Where do utility companies get there gas?

from a gas station.DUH

Does the federal government regulate consumers' access to their credit scores and reports?

The Federal Government passed a law so all consumers have free access to all of their credit history. They regulate these companies so they can not charge the consumers for this right.

Give some examples of monopolistic competition?

Utility companies generally have a monopoly, but it is highly regulated by government. Some telecom companies had state-sponsored monopolies until recently (see Comcast/AT&T in Mighican).

How is electric consumption measured by utility companies?

A meter.

How to Include my utility bill in credit report?

Contact your utility company and ask them to report your information with all three bureaus. Keep in mind that not all utility companies are able to provide this option, so seek out companies that give you this option.