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Economic reform of the electricity industries of Central and Eastern Europe

  • Jon Stern
  • Junior R. Davis

The purpose of the paper is the following: firstly, to chart how much economic reform of CEE electricity industries has taken place to date; secondly, to discuss why progress has been so limited; and thirdly, to consider the prospects over the next few years. In charting economic progress to date, we will consider and discuss progress in electricity price unbundling and rebalancing; in utility commercialization, in industry and market restructuring and liberalization; and in privatization, as well as the development of economic regulation. For the reasons outlined above, we will explore the pricing issues in some detail as they are essential for understanding the difficulties in making progress in the other aspects of economic reform. The analysis concentrates on the ten countries with which the EU has and Association Agreement and who are stated candidates for EU membership (the EU 10). Copyright The European Bank for Reconstruction and Development, 1998.

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Article provided by The European Bank for Reconstruction and Development in its journal Economics of Transition.

Volume (Year): 6 (1998)
Issue (Month): 2 (November)
Pages: 427-460

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Handle: RePEc:bla:etrans:v:6:y:1998:i:2:p:427-460
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  1. J. M. C. Rollo & J. Stern, 1992. "Growth and Trade Prospects for Central and Eastern Europe," The World Economy, Wiley Blackwell, vol. 15(5), pages 645-668, 09.
  2. Mark E. Schaffer, 1997. "Do Firms in Transition Economies have Soft Budget Constraints? A Reconsideration of the Concepts and Evidence," CERT Discussion Papers 9720, Centre for Economic Reform and Transformation, Heriot Watt University.
  3. Gray, D., 1995. "Reforming the Energy Sector in Transition Economies. Selected Experience and Lessons," World Bank - Discussion Papers 296, World Bank.
  4. Jon Stern, 1994. "Economic regulation in Central and Eastern Europe 1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 2(3), pages 391-398, 09.
  5. I. Shteinbuka & M. Kazaks, 1996. "Fiscal Adjustment in Latvia under Transition," CERT Discussion Papers 9601, Centre for Economic Reform and Transformation, Heriot Watt University.
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