In recent years competition authorities have applied general competition rules in regulated industries in addition to or instead of the regulation there in force this raises issues as the two sets of rules are not necessarily identical and the authorities in charge of applying them do not always pursue the same objectives. Introducing competition into a regulated and monopolised industry requires both imagination and care and often entails costs which need to be balanced against the expected benefits of competition it is important for policymakers to remember that competition is not an objective but is an instrument for achieving ultimate goals. Competition in regulated industries forrest n krutrer introduction the sherman antitrust act of 18901 rests on the premise that free and unfettered competition is in the nations best interest the act to regulate commerce of 18872 rests on the premise that the forces of the free market must be regulated in the public inter est. The uk has pioneered the introduction of competition into previously monopolistic utility industries competition has been introduced progressively starting with bt and continuing with the gas and electricity industries where it is to be completed during 1998 in water competition has so far been restricted to new developments and it is said that it will be phased in once the initial