How are your buses run now and what does regulating mean?

Currently, local authorities have no control over commercial bus services, which mean that bus operators only run routes they want to and they can charge what they like. There is no integration across the different operators and certain areas have a skeletal service. 
Under a regulated network, the local authority would have planning powers. The key difference is that companies compete for contracts, given by the local authority, to run specified services.
Through bus regulation or franchising, local authorities, would have the ability to decide the routes, frequencies, fares and quality standards for all buses. This is how services are run in London and across a lot of Europe.