Limits to the Sanctioning Function of the Public Utilities Regulatory Agencies

Abstract

Among the various functions of the regulatory agencies, the sanctioning is less studied. The doctrine limits itself recognizing the legitimacy of regulators to impose sanctions arising from its inspection activity, forgetting, however, to examine the issue from the aspect of an amplified  logic  as  the  regulation,  which  appropriates  other  principles  beyond  the Administrative Law, seeking to functionalize the decisions issued by its collegiate bodies, under strong influence of Law and Economics. This decision making method is best suited to the dynamics of current social relations and to the almost daily technological advances in a world constantly changing and marked by interdependent heterogeneities. The imposition of fines is therefore a simple solution under contractual rules, which does not meet the main goal of public utility regulation, which is to ensure its adequacy, as provided for by art. 6 of Law No. 8,987 / 95.