Restructuring and Regulatory Reform in the Power Sector

Author: Peter Choynowski

Publisher:

ISBN: STANFORD:36105115171105

Category: Electric power consumption

Page: 51

View: 364

A worldwide trend began in the 1980s in both developed & developing countries to restructure their power sectors & reform their regulatory framework. The motivation in developed countries to restructure & reform was mainly to improve sector efficiency, while in the developing countries, it was to move the sector away from reliance on scarce public resources to more private sector financing. Since the Asian Development Bank was involved in restructuring & regulatory reform in many of Asia's developing countries, this report takes stock of the progress made to date in these countries, reviews the relevant experience in some developed countries & Latin America, & identifies the key issues that could have a bearing on its operations in Asia.
Rethinking Power Sector Reform in the Developing World

Author: Vivien Foster

Publisher: World Bank Publications

ISBN: 9781464814433

Category: Science

Page: 356

View: 944

During the 1990s, a new paradigm for power sector reform was put forward emphasizing the restructuring of utilities, the creation of regulators, the participation of the private sector, and the establishment of competitive power markets. Twenty-five years later, only a handful of developing countries have fully implemented these Washington Consensus policies. Across the developing world, reforms were adopted rather selectively, resulting in a hybrid model, in which elements of market orientation coexist with continued state dominance of the sector. This book aims to revisit and refresh thinking on power sector reform approaches for developing countries. The approach relies heavily on evidence from the past, drawing both on broad global trends and deep case material from 15 developing countries. It is also forward looking, considering the implications of new social and environmental policy goals, as well as the emerging technological disruptions. A nuanced picture emerges. Although regulation has been widely adopted, practice often falls well short of theory, and cost recovery remains an elusive goal. The private sector has financed a substantial expansion of generation capacity; yet, its contribution to power distribution has been much more limited, with efficiency levels that can sometimes be matched by well-governed public utilities. Restructuring and liberalization have been beneficial in a handful of larger middle-income nations but have proved too complex for most countries to implement. Based on these findings, the report points to three major policy implications. First, reform efforts need to be shaped by the political and economic context of the country. The 1990s reform model was most successful in countries that had reached certain minimum conditions of power sector development and offered a supportive political environment. Second, countries found alternative institutional pathways to achieving good power sector outcomes, making a case for greater pluralism. Among the top performers, some pursued the full set of market-oriented reforms, while others retained a more important role for the state. Third, reform efforts should be driven and tailored to desired policy outcomes and less preoccupied with following a predetermined process, particularly since the twenty-first-century century agenda has added decarbonization and universal access to power sector outcomes. The Washington Consensus reforms, while supportive of the twenty-first-century century agenda, will not be able to deliver on them alone and will require complementary policy measures
Deregulating and Regulatory Reform in the U.S. Electric Power Sector

Author: Paul L. Joskow

Publisher:

ISBN: OCLC:52315878

Category:

Page: 130

View: 913

(Cont.) The structure and performance of California's competitive electricity markets are discussed in detail as an example of the applications of these principles and the challenges that electricity sector restructuring must confront. Early experience with retail competition in California, Massachusetts, and Pennsylvania is reviewed. The paper concludes with an initial assessment of the benefits and costs of electricity sector restructuring to date in the U.S. and some thoughts regarding future challenges and trends.
Infrastructure Regulation

Author: Darryl S. L. Jarvis

Publisher: World Scientific

ISBN: 9789814335744

Category: Infrastructure (Economics)

Page: 599

View: 801

Regulation of public infrastructure has been a topic of interest for more than a century. Providing public goods, securing their financing, maintenance, and improving the efficiency of their delivery, has generated a voluminous literature and series of debates. More recently, these issues have again become a central concern, as new public management approaches have transformed the role of the state in the provision of public goods and the modalities by which the financing of infrastructure and its operation are procured. Yet, despite the proliferation of new modalities of regulating infrastructure little is known about what works and why. Why do certain regulatory regimes fail and others succeed? What regulatory designs and institutional features produce optimal outcomes and how? And why do regulatory forms of governance when transplanted into different institutional contexts produce less than uniform outcomes? This book addresses these questions, exploring the theoretical foundations of regulation as well as a series of case studies drawn from the telecommunications, electricity, and water sectors. It brings together distinguished scholars and expert practitioners to explore the practical problems of regulation, regulatory design, infrastructure operation, and the implications for infrastructure provision.
Impact of restructuring and privatization on the performance of the electricity sector in Nigeria

Author: Eshi Agbadua

Publisher: GRIN Verlag

ISBN: 9783668401433

Category: Business & Economics

Page: 54

View: 888

Master's Thesis from the year 2015 in the subject Economics - Case Scenarios, grade: 65, Aston University, language: English, abstract: The slow and deteriorating performance of the electricity power sector over the last few decades triggered the Federal Government of Nigeria to embark on a power sector reform program. This study examines the impact of the power sector reform (restructuring and privatization) on the performance of the electricity sector in Nigeria over the past twenty-five (25) years. Relevant electricity indicators are used to access the performance changes in three significant period; pure state-ownership, transition (restructuring and unbundling) and full privatization of the sector. The study also assesses how the effect of the economic environment, regulatory governance and political climate/effectiveness within the period contributes to the improvements in the electricity sector. The results shows that privatization is associated with improvement in the technical efficiency, access to electricity, electricity consumption per capita and an increase in electricity tariff in the sector. Furthermore, the results highlight the significant relationship between regulatory governance and a robust economy on the performance changes observed in the power industry.
Reforming the Power Sector in Africa

Author: M. R. Bhagavan

Publisher: Zed Books

ISBN: STANFORD:36105023646545

Category: Business & Economics

Page: 380

View: 230

Today, the public sector in Africa, like in much of the rest of the world, is perceived as having led to inefficiency, waste, indifference and corruption in the provision of public services generally. The power supply sector is now experiencing a process of restructuring and reform, including privatization. The contributors to this volume, who are themselves involved in the policy process in their own countries, examine how far this movement towards restructuring and reform has proceeded in Malawi, Tanzania, Uganda and Zimbabwe.Based on empirical research, the authors have generated policy options and scenarios that are bound to be of vital interest to policy makers and implementers throughout Sub-Saharan Africa. Among the key topics dealt with are: the determinants of performance and efficiency; vertical and horizontal unbundling of power generation, distribution and sales; the role of independent power producers; the benefits and risks attendant on reform and privatization; and the legal and regulatory framework on which everything else depends.
Regulatory Reform and Industrial Restructuring

Author: Alberto Asquer

Publisher:

ISBN: OCLC:1309059729

Category:

Page: 25

View: 903

Regulatory reforms are often made and implemented with the aim to introduce some competitive mechanisms in infrastructure industries which were previously regulated through public ownership. The impact of these reforms on the organisation and behaviour of infrastructure industries, however, may result in partial restructuring of the regulated sector only and may not deliver the expected performance improvements. This paper aims to address this issue by analysing and discussing the regulatory reforms and the industrial restructuring which took place in the water, the gas, and the electricity sectors in Italy in the last about 15 years. Each of these three infrastructure industries was subject to regulatory reforms (Act 36/1994, Legislative Decree 164/2000, and Legislative Decree 79/1999 respectively). This paper contrasts and compares these reforms in terms of: economic regulatory institutions, tariff setting mechanisms, spacial organisation of the services, degree of involvement of the private sector, and industrial restructuring. The impact of these reforms is assessed along the dimensions of: degree of openness to new entrants, market power retained by the incumbents, concentration of the industry, prices, and investments. On the whole, although the reforms of the water, gas, and electricity industries in Italy present unique features and effects, they all resulted in relatively modest achievements in terms of competitive pressures. This has consequences in terms of relative stability of prices and reliance on public funds for financing infrastructure development.
The Political Economy of Power Sector Reform

Author: David G. Victor

Publisher: Cambridge University Press

ISBN: 9781139460798

Category: Business & Economics

Page:

View: 652

Over the last fifteen years the world's largest developing countries have initiated market reform in their electric power sectors from generation to distribution. This book evaluates the experiences of five of those countries - Brazil, China, India, Mexico and South Africa - as they have shifted from state-dominated systems to schemes allowing for a larger private sector role. As well as having the largest power systems in their regions and among the most rapidly rising consumption of electricity in the world, these countries are the locus of massive financial investment and the effects of their power systems are increasingly felt in world fuel markets. This accessible volume explains the origins of these reform efforts and offers a theory as to why - despite diverse backgrounds - reform efforts in all five countries have stalled in similar ways. The authors also offer practical advice to improve reform policies.
Designing Effective Power Sector Reform

Author: Lado Kurdgelashvili

Publisher: ProQuest

ISBN: 0549925104

Category: Energy industries

Page:

View: 835

Around the world, network utilities (i.e., electricity, natural gas, railway, telecommunications, and water supply industries) are undergoing major structural transformation. A new wave of market liberalization, together with rapid technological changes, has challenged the previously dominant monopoly organization of these industries. A global trend toward deregulation and restructuring is evident in countries at different levels of social and economic development. The challenges of transition from a monopolistic to an open market competitive structure are numerous. Understanding these problems and finding solutions are essential to successful restructuring. In developing countries and economies in transition (i.e., the Eastern Europe and the former Soviet Union), government-owned utilities are often considered to be highly inefficient. The dominant power sector restructuring strategies seek to promote economic efficiency through a gradual introduction of competition into the power sector. Five components of power sector reform are commonly proposed by the World Bank and others for these countries: commercialization, privatization, establishment of an independent regulatory agency, unbundling and gradual introduction of competition in generation and retail markets. The Republic of Georgia, like many economies in transition (e.g., Hungary, Ukraine, and Kazakhstan) has followed this reform model. However, outcomes of the reform have not been as promised. The acute economic problems facing Georgia after it regained independence have compounded problems in the power sector. A review of Georgia's utility reforms reveals that the country has undertaken electricity industry restructuring without giving substantial consideration to the problems that these reforms might have created within the industry or society. The main task of this dissertation is to find the restructuring model, which can best serve economic, social and environmental goals under circumstances similar to those in economies of transition. The dissertation provides a guide for policy makers in the energy sector for implementing power sector reform. At first the dissertation offers a general overview of different models of power sector organization, regulatory frameworks and market arrangements, and the potential impact of reform on social welfare. This knowledge is then applied for analysis of power sector reform in the Republic of Georgia. Social welfare analysis (SWA) is a major analytical tool used in the research for assessing the potential impacts of different power sector organization models on various stakeholders. Through the research it was identified that power industry arrangements in different countries have their particularities; however, after some level of simplification, power sector organization models can fit into one of three broad categories: (1) Government control and regulation of generation and retail segments of the power industry. (2) Full scale competition in the generation segment and retail choice. (3) Partial government control of the generation segment and limited retail choice. For SWA of different power market arrangement scenarios, electricity supply and demand curves had to be derived; for this purpose electricity demand forecasting and power supply evaluation methodologies were developed. This dissertation combines SWA, accepted demand forecasting methods and established power supply evaluation techniques to assess power sector performance under specified policy scenarios relevant to the circumstances of economies in transition such as the Republic of Georgia. Detailed analyses are performed for understanding possible outcomes with the introduction of different reform models. In addition, specific options for incorporating sustainable energy alternatives in the energy planning process are identified and assessed in economic, environmental and social terms. Special attention is given to market-based instruments for promoting sustainable energy options (e.g., renewable portfolio standards, energy conservation and energy efficiency programs) and social policies (e.g., lifeline rates, local employment). Results obtained from the detailed analysis of policy options for Georgia guide recommendations for a reform of the power sector.
Assessment of Power Sector Reforms in Viet Nam

Author: Asian Development Bank

Publisher: Asian Development Bank

ISBN: 9789292571047

Category: Business & Economics

Page: 55

View: 435

Viet Nam envisions a completely competitive power sector in the long term, including full wholesale and retail competition. To attain this goal, it unbundled its power sector's monopoly structure and instituted institutional, regulatory, and pricing reforms. Although considerable progress has been made, implementation has not been expeditious, with the government still retaining a strong vested ownership and management interest in the power sector. Further restructuring is needed to ensure complete independence of the system players and to attain pricing transparency. In this country report, the Asian Development Bank assesses Viet Nam's experience in reforming its power sector for insights that other Asian developing economies could find useful when pursuing their own power sector planning and policy and strategy formulation.