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Power Utility Re-regulation in East European and CIS Transformation Countries (1990-1999): An Institutional Interpretation

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  • Christian von Hirschhausen
  • Petra Opitz

Abstract

This paper analyzes the process of power utility re-regulation in Eastern Europe and the CIS during the decade of systemic transformation (1990-1999); in particular, it explores reasons why early attempts to introduce competition-oriented reform models have not succeeded. We discuss advantages and disadvantages of various reform models from an institutional economic perspective. The approaches to and results of power sector reform in Eastern Europe are assessed; quantitative indicators are wholesale and retail prices, cost coverage ratios, investment levels, and the degree of unbundling and privatization. The paper concludes that a gradual approach to reforms may have been appropriate for the first years of systemic transformation, but that today, ten years later, there is no reason to delay market-oriented reforms any longer.

Suggested Citation

  • Christian von Hirschhausen & Petra Opitz, 2001. "Power Utility Re-regulation in East European and CIS Transformation Countries (1990-1999): An Institutional Interpretation," Discussion Papers of DIW Berlin 246, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp246
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    References listed on IDEAS

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    Cited by:

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    3. Zhang, Yinfang & Parker, David & Kirkpatrick, Colin, 2005. "Competition, regulation and privatisation of electricity generation in developing countries: does the sequencing of the reforms matter?," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 358-379, May.
    4. Janos Szlavik & Maria Csete, 2012. "Climate and Energy Policy in Hungary," Energies, MDPI, vol. 5(2), pages 1-24, February.
    5. Lars Kumkar, 2003. "Regulatory Choices and Commitment: Challenges for Electricity Market Regulation in Kosovo," Post-Communist Economies, Taylor & Francis Journals, vol. 15(1), pages 91-115.
    6. Boute, Anatole, 2020. "Regulatory stability and renewable energy investment: The case of Kazakhstan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    7. Nataliia Ostapenko, 2014. "Features Of Small Business Development In The Cis Countries: Does Institutional Environment Affect," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 19.

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    More about this item

    Keywords

    Power sector; institutions; transition; Eastern Europe;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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