Puzzling.
14V at idle sounds fine from the point of view of the charging circuit, but the voltage shouldn't drop as the revs increased, unless you also turned on the headlight. What was the battery voltage before you switched on the ignition?
It could be that the regulator detects the battery is duff and crowbars down to a lower voltage for protection, but I can't really see the point of making one that clever. Best thing is probably to buy a new battery and check how it behaves with a good 'un.