Reform and Regulation of the Electricity Sectors in Developing Countries

Reform and Regulation of the Electricity Sectors in Developing Countrie

Deregulation and R&D in Network Industries: The Case of the Electricity Industry

Electricity reform has coincided with a significant decline in energy R&D activities. Technical progress is crucial for tackling many energy and environmental issues as well as for long-term efficiency improvement. This paper reviews the industrial organisation literature on innovation to explore the causes of this decline, and shows that it was predicted by the pre-reform literature. More recent evidence endorses this conclusion. At the same time, R&D productivity and innovative output appear to have improved in both electric utilities and equipment suppliers, in line with general improvements in the operating efficiency of the sector. Despite this, a lasting decline in basic R&D and innovation input into basic research may negatively affect development of radical technological innovation in the long run. There is a need for reorientation of energy technology policies and spending toward more basic research, engaging more firms in R&D, encouraging collaborative research, and exploring public private partnerships

Liberalisation of European energy markets: challenges and policy options

The European electricity and gas markets have been going through a process of liberalisation since the early 1990s. This process has changed the sector from a regulated structure of, predominantly, publicly owned monopolists controlling the entire supply chain, into a market where private and public generators and retailers compete on a regulated and unbundled system of transport infrastructure. This report assesses the evidence of the effects of liberalisation on efficiency, security of energy supply and environmental sustainability.

Trade in Energy Services - GATS and India

Energy plays a vital role in the development of any economy and given its unequal distribution trade in energy, especially fossil fuels, is an important component of international trade. In the past, due to its public good characteristics, energy-related services were mostly supplied by the government. With liberalization and globalization the sector underwent significant transformation. Many new services developed and large multinationals emerged which increased global trade in energy services. Energy services is now an important component of all trade agreements. In the above context, this paper examines Indias opportunities and constraints to trade in energy services within the GATS framework. The study found that India has the capability of exporting high-skilled manpower at competitive prices but is facing various market access, discriminatory and regulatory barriers in markets of export interest. With the entry of energy producing countries such as Saudi Arabia into the WTO, the Doha negotiations provide an important platform to offensively push for liberalization in this sector. India needs foreign investment, technical know-how and international best practices in energy. The country has progressively liberalized this sector and there are no major entry barriers. However, India has not been successful in attracting large foreign investment and technology. This is due to various domestic barriers which make it difficult to set up a competitive operation. The study lists the reform measures which will help the sector become globally competitive, protect the interests of consumers and meet the energy needs of society. Since this sector is sensitive and is closely monitored by governments across the world, government-to-government collaborations would ease the entry process for Indian companies in foreign markets, diversify our energy resource base and improve energy security.GATS, Energy, trade, India & the WTO

The Andean Electricity Market: A Competition Law Analysis

The countries of the Andean Community (Bolivia, Colombia, Ecuador, and Peru) have great potential to produce clean and reliable energy. However, this potential has only been exploited to a limited extent. Network industries, such as the electricity sector, have special features that create unique challenges for both developed and developing countries seeking to adequately manage this important part of the economy. Although the member countries of the Andean Community have substantially reformed their energy industries in the past decades, this sector still requires further competition. So far, most of the efforts undertaken by these countries have neglected the possibility of enhancing competition in the energy market through deeper regional integration. This Article explores the benefits and challenges of pursuing regional energy market integration in the Andean Community by examining the current Andean legal regime and comparing its most important aspects with the regime implemented during the process of energy integration in the European Union. The aim of this analysis is to propose several changes to the Andean legal framework in order to improve the regional energy integration regime from a competition law perspective

Current and forthcoming issues in the South African electricity sector

One of the contentious issues in electricity reform is whether there are significant gains from restructuring systems that are moderately well run. South Africa's electricity system is a case in point. The sector's state-owned utility, Eskom, has been generating some of the lowest-priced electricity in the world, has largely achieved revenue adequacy, and has financed the bulk of the government's ambitious electrification program. Moreover, the key technical performance indicators of Eskom's generation plants have reached world-class levels. Yet the sector is confronted today with serious challenges. South Africa's electricity system is currently facing a tight demand/supply balance, and the distribution segment of the industry is in serious financial trouble. This paper provides a careful diagnostic assessment of the industry and identifies a range of policy and restructuring options to improve its performance. It suggests removing distribution from municipal control and privatizing it, calls for vertical and horizontal unbundling, and argues that the cost-benefit analysis of different structural options should focus on investment incentives and not just current operating efficiency.Energy Production and Transportation,Electric Power,Environment and Energy Efficiency,Energy and Environment,Infrastructure Economics

The role of transmission pricing in electricity industry restructuring : the case of Saudi Arabia.

Available from British Library Document Supply Centre-DSC:DXN048790 / BLDSC - British Library Document Supply CentreSIGLEGBUnited Kingdo

Conceptualization of energy security in resource-poor economies: The role of the nature of economy

© 2017 Elsevier Ltd This paper studies how energy security is conceptualized in four resource-poor, advanced island economies: Singapore, South Korea, Japan, and Taiwan. It is found that the energy security conceptualization of the four economies in effect returns to the very original and conventional one: stable and reliable energy supply. However, these economies are different in the level of stability and reliability demanded. Why are they similar in energy security conceptualization whereas different in the level of stability and reliability demanded? Adopting documentation analysis, comparative study, and the varieties of capitalism theory, we find that the nature of economy constitutes the decisive factor that shapes energy security conceptualization. The coordinated market economies (CMEs) are more concerned about energy supply disruption than the liberalized market economies (LMEs). The paper demonstrates that despite numerous energy security concepts in the literature, resource-poor economies still adopt the original and conventional one in practice. The findings suggest that security of supply is the top measure for resource-poor economies to improve their energy security and creating a joint petroleum and LNG market would be desirable for the four economies in this study

Restructuring regulation of the rail industry for the public interest

Throughout the world, the rail industry historically has been one of the most extensively regulated of all sectors. Price, entry, exit, financial structure, accounting methods, vertical relations, and operating rules have all been subject to some form of government control. The public utility paradigm of government regulation has been applied on the assumption that the economic characteristics of the rail industry preclude competitive organization or the need for market responsiveness. In the past three decades, however, policymakers and economists have become increasingly critical of traditional regulation of the rail industry. It is generally accepted that in markets where rail carriers seek to meet demand, there is often effective competition, and that government restrictions on the structure and conduct of firms in this industry impose considerable costs on society. Misguided regulatory policies have been blamed for the misallocation of freight traffic among competing modes of transport, excess capacity, excessive operating costs, and poor investment decisions. Regulatory controls have also shouldered much of the blame for the poor financial condition of railroads, the deterioration of rail plant, the suppression and delay of cost-reducing innovations, and the mediocre quality of rail service. The authors suggest principles for restructuring railroad regulation - indeed, for restructuring the orientation of railroad entries - for the sake of public interest. Much can be learned, they contend, from applying the principles of industrial organization to analysis of the rail industry. To assess the implications of policies aimed at rate regulation or infrastructure, it is essential to understand the nature of technology, costs, and demand in the rail industry. Government's role in relation to market behavior should be based explicitly on the economic and technological realities of the railroad marketplace. The authors say that restructuring along the lines they suggest - putting more emphasis on marketing effectiveness - will result in a more profitable railway with a better chance of covering its costs for commercial services. Changing the basis for noncommercial services as they suggest will make those services more effective at fulfilling public policy objectives, will eliminate an insuperable drain on revenues that condemns rails to inadequate investment, and will eliminate cross-subsidies that make it difficult for rails to compete against other modes of transport.Markets and Market Access,Economic Theory&Research,Environmental Economics&Policies,Decentralization,Enterprise Development&Reform,Banks&Banking Reform,Economic Theory&Research,Environmental Economics&Policies,Markets and Market Access,Access to Markets