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Privatisation of Electricity Distribution Companies�A Way Forward?

Author

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  • Afia Malik

    (Pakistan Institute of Development Economics)

Abstract

The private sector has long been promoted as a solution to the service delivery gap and to overcome financial constraints faced by the developing countries. The general belief is that state-owned utilities have no incentive to improve (Estrin and Pelletier, 2018). Political pressures and rent-seeking activities do not allow them to operate efficiently. The recruitment of managerial staff is under political pressure rather than merit, thus compromising management efficiency in the distribution utility. Therefore, the expectation is that the private management/ownership with the profit motive will lead to efficiency gains and cost savings, besides improving service delivery (Scott and Seth, 2013).

Suggested Citation

  • Afia Malik, 2022. "Privatisation of Electricity Distribution Companies�A Way Forward?," PIDE Knowledge Brief 2022:52, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:kbrief:2022:52
    as

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    File URL: https://file.pide.org.pk/uploads/kb-052-privatisation-of-electricity-distribution-companies-a-way-forward.pdf
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    References listed on IDEAS

    as
    1. Katharina Gassner & Alexander Popov & Nataliya Pushak, 2009. "Does Private Sector Participation Improve Performance in Electricity and Water Distribution?," World Bank Publications - Books, The World Bank Group, number 6605, April.
    2. Ada Karina Izaguirre, 1998. "Private Participation in the Electricity Sector : Recent Trends," World Bank Publications - Reports 11532, The World Bank Group.
    3. Rodriguez Pardina,Martin Augusto & Schiro,Julieta, 2018. "Taking stock of economic regulation of power utilities in the developing world : a literature review," Policy Research Working Paper Series 8461, The World Bank.
    4. Gulsevim Yumuk Gunay, 2016. "The Test of Corporate Governance System in the Electric Utilities Industry," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 6(1), pages 132-140, March.
    5. Saul Estrin & Adeline Pelletier, 2018. "Privatization in Developing Countries: What Are the Lessons of Recent Experience?," The World Bank Research Observer, World Bank, vol. 33(1), pages 65-102.
    6. Afia Malik & Idrees Khawaja, 2021. "Urban Resilience and its Impact on Electricity Provision in Karachi, Islamabad and Peshawar," PIDE Monograph Series 2021:1, Pakistan Institute of Development Economics.
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    Cited by:

    1. Tahir Basharat Cheema & Nadeem Ul Haque & Afia Malik (ed.), 2022. "Power Sector: An Enigma With No Easy Solution," PIDE Books, Pakistan Institute of Development Economics, number 2022:12.

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