TIPS has added Economic Regulation as one of its main research areas, where we'll focus mainly on essential services (energy, telecoms, transport and water) because of their social impact and network characteristics, to ensure universal and affordable access to essential services. The purpose of the paper is to provide some food for thought and to raise issues that can lead to further discussion and research. It covers the rationale for economic regulation, principles of regulation, a few country experiences in economic regulation, a snapshot of the South African situation and a concluding broad discussion and recommendations.