In the context of natural monopolies, how does regulatory oversight influence consumer surplus?

In natural monopolies, a single company provides a product or service, often making it more efficient than having multiple companies. Regulatory oversight means that the government monitors and controls how much the monopoly can charge for its goods or services. When regulators ensure that prices are fair and lower than what the company might charge without oversight, more consumers can afford the product, which increases consumer surplus. For example, if a utility company is allowed to charge only a certain price for electricity, more people can use it, leading to greater satisfaction and savings for those consumers. This balance helps ensure that while the company can still operate profitably, consumers benefit from lower prices and improved access.