Performance-Based Regulation
/ˌpɜːrfɔːrməns beɪst ˌrɛɡjʊˈleɪʃən/
Definitions
- (n.) A regulatory approach that sets performance goals or outcomes rather than prescribing specific processes or inputs, aiming to incentivize efficiency and innovation.
The utility was subject to performance-based regulation to encourage improved service quality without mandating exact methods.
Forms
- performance-based regulation
Related terms
See also
Commentary
Often used in public utility law, this approach shifts focus from compliance with detailed rules to achieving measurable results, promoting flexibility in meeting regulatory objectives.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.