Five regulators should be axed as part of a shake-up of transport and energy policy under a Conservative government that "must regulate less and tax less", a Tory policy group will recommend this week.

The specialist regulators for gas, electricity, water, telecoms and post should be scrapped, and any regulatory issues in those sectors handled by the competition watchdogs, the Conservatives' economic competitiveness group will say. It will call for a break-up of BAA's airports monopoly and measures to increase competition in the railway and water industries.