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Privatization of electricity distribution in the Northeast of Brazil: The good, the bad, the ugly or the naïve?

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  • Silvestre, Bruno
  • Hall, Jeremy
  • Matos, Stelvia
  • Figueira, Luiz Augusto
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    Abstract

    This paper analyzes the evolution of five electricity distribution companies in the Northeast of Brazil using technical and financial indicators. Three privatized and two public firms were analyzed between 1997 and 2008. The financial indicators are used as proxies for the capacity of the business to generate value for shareholders, while the technical indicators are used as proxies for service quality provided to consumers. We observed that the privatized firms had their financial indicators improved after privatization, increasing the value of the firm for the shareholders. However, there is no evidence that privatization affected the quality of service provided to consumers.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 38 (2010)
    Issue (Month): 11 (November)
    Pages: 7001-7013

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    Handle: RePEc:eee:enepol:v:38:y:2010:i:11:p:7001-7013

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    Web page: http://www.elsevier.com/locate/enpol

    Related research

    Keywords: Brazilian energy policy Electricity distribution deregulation Privatization;

    References

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    Cited by:
    1. Karahan, Hatice & Toptas, Mehmet, 2013. "The effect of power distribution privatization on electricity prices in Turkey: Has liberalization served the purpose?," Energy Policy, Elsevier, vol. 63(C), pages 614-621.
    2. Devkar, Ganesh A. & Mahalingam, Ashwin & Deep, Akash & Thillairajan, A., 2013. "Impact of Private Sector Participation on access and quality in provision of electricity, telecom and water services in developing countries: A systematic review," Utilities Policy, Elsevier, vol. 27(C), pages 65-81.

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