This is a presentation made at the workshop organised by the Independent Power Producers’ Association of India, at Mumbai in November 1999. The presentation is focused on the two major lacunae in the design of the regulatory process in the reform model viz. overburdening of the regulators and mis-match between the limited legal mandate of the regulators and the expectations of people. It pointed out that unless these lacuna are addressed there is a danger that the regulatory process instead of becoming a means for consensus-building and conflict-resolution, becomes a point for manifestation of social conflict and strife