The paper examines the contradictions of public utilities, with the local public services and electronic communications as paradigmatic examples. Although they originate in opposite market-based contexts and regulatory approaches, these services are characterised by a discrepancy between performance and users’ rights with regard to the quality of local public services and the universality of broadband internet access. The analysis also reveals structural inadequacies in the monitoring and evaluation of local public services (despite their centrality in the 2022 reform), as well as shortcomings in the financial planning and in the implementation of infrastructure for electronic communications services.

The paper suggests the rise of a modern principle of residuality, which exceeds the balance between regulation and competition. This principle calls for the justification of regulation in terms of necessity. Problem drivers should be also taken into consideration, as well as the regulatory content. The problem drivers appear to be enriched compared to the traditional ones, whilst also being disentangled from problems that have already materialized so as to embrace a prospective and anticipatory approach.