Agreed. Regulatory regimes aren't a magic wand -- they are tools that need to be wielded appropriately.
I think that any capital intensive infrastructure becomes more difficult to manage effectively as it ages. Even relatively rich and well maintained infrastructure like the US Interstate system has severe design flaws (35-year lifespan bridges that are 40 years old) that make life more complicated.
Is that a regulatory problem? I don't think so.
I'm not against government regulation of essential infrastructures, but we should be aware of the fact that it's very difficult to get right, particularly (but not only) in a political climate where government spending is such a divisive issue.