Power Sector Reform: Is There a Road Forward?
31 July 2006
By Dr. Michael Rosenzweig and Carlos Pabon-Agudelo with Dr. Sarah Voll
In the 1990s, government-dominated power sectors in the developing world began to implement reforms that unbundled integrated enterprises, privatized generation and distribution segments, and created independent regulatory agencies for oversight. However, a decade later, the majority of these power sector reforms have stalled or been abandoned, leading to questions about where these processes went wrong.
This article examines international experiences with the restructuring model. The authors outline the fundamental components that contribute to successful reform, focusing on which key steps must be accomplished during the vulnerable transition period. They also identify indicators that can be used to determine the likelihood of a sector successfully implementing reforms and suggest strategies for agencies seeking to induce governments to persevere through the transition.
