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Reform and regulation of the electricity sectors in developing countries

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  • Tooraj Jamasb

    (Department of Applied Economics, University of Cambridge)

Abstract

The 1990s witnessed a worldwide trend toward electricity sector reforms in developed and developing economies. These reforms have generally been based on private participation, regulatory reform, and competition in the sector. This paper reviews and draws lessons from the reform experience in developing countries. Developing countries have had to reform technically and financially less efficient electricity systems with less developed private sectors, weak economic and political institutions, shortage of skilled human resources, and lack of regulatory experience. The paper argues that competition and regulatory reform are equally important to the success of reforms. Also, the sector’s systemic characteristics and the country’s institutional endowment should weight equally in the design of reforms. In addition, distributional and access to service aspects of reforms call for a redefined state involvement rather than a complete withdrawal from the sector.
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Suggested Citation

  • Tooraj Jamasb, 2002. "Reform and regulation of the electricity sectors in developing countries," Working Papers EP08, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    • Handle: RePEc:enp:wpaper:ep08
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    References listed on IDEAS

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    5. See, Kok Fong & Coelli, Tim, 2013. "Estimating and decomposing productivity growth of the electricity generation industry in Malaysia: A stochastic frontier analysis," Energy Policy, Elsevier, vol. 62(C), pages 207-214.
    6. Adrien de Hauteclocque & Jean-Michel Glachant, 2011. "Long-term Contracts and Competition Policy in European Energy Markets," Chapters, in: Jean-Michel Glachant & Dominique Finon & Adrien de Hauteclocque (ed.), Competition, Contracts and Electricity Markets, chapter 9, Edward Elgar Publishing.
    7. Bradshaw, Amanda, 2017. "Regulatory change and innovation in Latin America: The case of renewable energy in Brazil," Utilities Policy, Elsevier, vol. 49(C), pages 156-164.
    8. William Yu & Michael G. Pollitt, 2009. "Does Liberalisation cause more electricity blackouts? Evidence from a global study of newspaper reports," Working Papers EPRG 0902, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    9. Paul Joskow, 2003. "Electricity Sector Restructuring and Competition: Lessons Learned," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(121), pages 548-558.
    10. Ullah, Kafait & Arentsen, Maarten J. & Lovett, Jon C., 2017. "Institutional determinants of power sector reform in Pakistan," Energy Policy, Elsevier, vol. 102(C), pages 332-339.
    11. Jamasb, T. & Pollitt, M., 2005. "Deregulation and R&D in Network Industries: The Case of the Electricity Industry," Cambridge Working Papers in Economics 0533, Faculty of Economics, University of Cambridge.
    12. Wagner Montoro Júnior & Arilton Teixeira, 2004. "Measuring Cost Efficiency in the Brazilian Electricity Distribution Sector," Brazilian Business Review, Fucape Business School, vol. 1(1), pages 63-73, January.
    13. Asantewaa, Adwoa & Jamasb, Tooraj & Llorca, Manuel, 2022. "Reforming Small Electricity Systems: Market Design and Competition," Working Papers 12-2022, Copenhagen Business School, Department of Economics.
    14. Višković, Alfredo & Franki, Vladimir & Valentić, Vladimir, 2014. "Effect of regulation on power-plant operation and investment in the South East Europe Market: An analysis of two cases," Utilities Policy, Elsevier, vol. 30(C), pages 8-17.
    15. Muhammad Saleem, 2007. "Benchmarking and Regulation for the Electricity Distribution Sector in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 8(1), pages 117-138, January.
    16. See, Kok Fong & Coelli, Tim, 2014. "Total factor productivity analysis of a single vertically integrated electricity utility in Malaysia using a Törnqvist index method," Utilities Policy, Elsevier, vol. 28(C), pages 62-72.
    17. Ziga Zarnic, 2010. "From Liberalization Towards Integration: Have Markups of EU Electricity Firms Changed?," LICOS Discussion Papers 26110, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    18. Williams, J.H. & Ghanadan, R., 2006. "Electricity reform in developing and transition countries: A reappraisal," Energy, Elsevier, vol. 31(6), pages 815-844.
    19. Jamasb, T. & Mota, R. & Newbery, D. & Pollitt, M., 2004. "‘Electricity Sector Reform in Developing Countries: A Survey of Empirical Evidence on Determinants and Performance’," Cambridge Working Papers in Economics 0439, Faculty of Economics, University of Cambridge.
    20. Anton Eberhard, 2017. "Powering Africa: Facing the Financing and Reform Challenges," Working Paper 808f2af7-2cf9-4bca-8b3f-3, Agence française de développement.
    21. Jamasb, Tooraj & Pollitt, Michael, 2008. "Liberalisation and R&D in network industries: The case of the electricity industry," Research Policy, Elsevier, vol. 37(6-7), pages 995-1008, July.
    22. Chattopadhyay, Pradip, 2007. "Testing viability of cross subsidy using time-variant price elasticities of industrial demand for electricity: Indian experience," Energy Policy, Elsevier, vol. 35(1), pages 487-496, January.
    23. Ma, Chunbo & He, Lining, 2008. "From state monopoly to renewable portfolio: Restructuring China's electric utility," Energy Policy, Elsevier, vol. 36(5), pages 1697-1711, May.
    24. Gratwick, Katharine Nawaal & Eberhard, Anton, 2008. "Demise of the standard model for power sector reform and the emergence of hybrid power markets," Energy Policy, Elsevier, vol. 36(10), pages 3948-3960, October.

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    More about this item

    Keywords

    Electricity; Reform; Regulation;
    All these keywords.

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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