A Labour MP has warned the government that the system of utility regulation needs an urgent review.

Brian White has said that with plans underway to create a watchdog for the communications and media industry the time is right to look at the role of regulators in delivering public services.

A report by the National Audit Office this week concluded that the regulators overseeing the telecoms industry and former public utilities had been successful in reducing prices but warned the point of diminishing return was now being reached by some.

White led an adjournment debate on the issue in which he raised serious questions for ministers to consider before they expand the role regulators play.

The MP for Milton Keynes North East told ePolitix.com that now was a good point to review the work of the increasing number of watchdogs appointed by the government.

"We're working on the assumption that regulators are a good thing but we need to address some of the weaknesses. I'm not trying to say there's an answer but it's important that we kick-start the debate," he said. "Regulators have grown up on an ad hoc basis. Now is the time to review it."

White claimed there are two central problems - the close relationship some regulators have with their industries and the distance they have with ministers.

In the case of the Post Office, White argued the arms-length relationship with ministers has led to the government taking the blame for the regulator's decision to open markets up to competition.

"There's a real problem where power has been devolved but not the responsibility. In the case of the Post Office that means the ministers get all the flak when the regulator chooses not to take into account the social objectives," White said.