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Restructuring and Privatising Electric Utilities in Eastern Europe

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  • Newbery, David

Abstract

Privatising electricity seems an attractive way of reducing foreign public debt but requires raising tariffs and creating a credible system of price regulation, currently lacking in many East European countries. The ultimate benefits of proper regulation and eventual privatisation result from upsetting the present unsatisfactory equilibrium with underpricing and underinvestment, and should improve efficiency in generation. There are difficult choices to make over the form of regulation, the design of dispute resolution procedures, and whether to separate generation from transmission, few of which are urgent.

Suggested Citation

  • Newbery, David, 1994. "Restructuring and Privatising Electric Utilities in Eastern Europe," Institute for Policy Reform Working Paper Series 294829, Institute for Policy Reform.
    • Handle: RePEc:ags:iprwps:294829
    DOI: 10.22004/ag.econ.294829
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