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Utility Benchmarking and Regulation in Developing Countries

Utility Benchmarking and Regulation in Developing Countries
Author: Silver Mugisha
Publisher: IWA Publishing
Total Pages: 211
Release: 2011-05-14
Genre: Science
ISBN: 1843392577

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Utility performance, especially in developing countries is still working toward the standard necessary to deliver best practice. Utility Benchmarking and Regulation in Developing Countries examines performance monitoring and regulation as a prominent efficiency enhancement tool and clarifies many of the unknowns regarding the design and approach surrounding the area of utility management. Principles and practices are linked in a way that is informative and accessible, highlighting the challenges facing those who are trying to improve performance in the water sector. Operational settings are complex and unpredictable in developing countries due to inadequate infrastructure planning and this book makes clear which systems work best in these situations. Utility Benchmarking and Regulation in Developing Countries discusses performance monitoring in the critical areas of utility management that achieve sustainable performance goals: Performance development planning Modes of performance monitoring Provocative approaches to incentives creation Monitoring through high incentive plans Customer relations monitoring Pro-poor oriented monitoring Careful use of partial performance indicators Proposed indicators for assessing governance incentives A case study on the National Water and Sewerage Corporation, Uganda is included in the book detailing the difficulties in discerning performance progress based on partial performance indicators. It underlines disparities in basing performance conclusions on partial performance indicators on one hand and aggregate analysis using modern benchmarking toolkits on the other. This is an excellent handbook for utility monitors or regulators whose primary duty is to oversee performance management. It is a valuable resource for decision-makers, analysts, and policy-makers and can be used in capacity-building programs (both in-house and in universities) around the world.


Electricity Sector Reform in Developing Countries

Electricity Sector Reform in Developing Countries
Author: Tooraj Jamasb
Publisher: World Bank Publications
Total Pages: 78
Release: 2005
Genre: Electric power
ISBN:

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"Driven by ideology, economic reasoning, and early success stories, vast amounts of financial resources and effort have been spent on reforming infrastructure industries in developing countries. It is therefore important to examine whether evidence supports the logic of reforms. The authors review the empirical evidence on electricity reform in developing countries. They find that country institutions and sector governance play an important role in the success and failure of reform. And reforms also appear to have increased operating efficiency and expanded access to urban customers. However, the reforms have to a lesser degree passed on efficiency gains to customers, tackled distributional effects, and improved rural access. Moreover, some of the literature is not methodologically robust and on par with general development economics literature. Further, findings on some issues are limited and inconclusive, while other important areas are yet to be addressed. Until we know more, implementation of reforms will be more based on ideology and economic theory rather than solid economic evidence. "--World Bank web site.


Electricity and Telecommunications Regulation in Small and Developing Countries

Electricity and Telecommunications Regulation in Small and Developing Countries
Author: Jon Stern
Publisher:
Total Pages: 0
Release: 2002
Genre:
ISBN:

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Over the last 10-15 years, a new standard model has taken hold for the economic framework for the operation of utilities. The new model has as its core that utility services will be: -provided by a set of commercialised companies; -monopoly (eg network) elements are separated from potentially competitive elements; -competition is actively introduced into the potentially competitive elements; and -private capital is introduced where possible and appropriate, particularly into the competitive elements, typically with privatisation of some or all of the existing assets. Over the last 10-15 years, this new model has largely replaced the traditional model of utility services being supplied by a state-owned vertically and horizontally integrated monopoly, supervised by the national government and typically operating in a non-commercial or semi-commercialised way. This change has been induced across developed and now across developing countries for the following two main reasons: (i) a major reduction in the ability of national governments to finance utility investment from tax revenues ; an (ii) a much greater emphasis on the need to improve efficiency and reduce the costs of infrastructure services (connection as well as service) coupled with (at least in developed countries) the achievement of very widespread if not universal service . To support the newly commercialised and privatised utilities, there have been major developments in the theory and practice of regulation. New utility regulatory institutions have been discussed and introduced in many countries. In addition, it has been realised that the introduction of competition (and, in particular, the development of competition over networks) has demonstrated the need for new and more complex forms of regulation to support the utility reforms.


Independent Regulation of Public Utilities in Developing Countries and Efficiency

Independent Regulation of Public Utilities in Developing Countries and Efficiency
Author: Babacar Sarr
Publisher:
Total Pages:
Release: 2015
Genre:
ISBN:

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This paper evaluates the effects of the establishment of an Independent Regulatory Authority (IRA) on electricity sector performance in developing countries. The study assesses the impact of such reform on electricity generated, technical quality of the service and country energy efficiency. Double-Difference and Matching are used to address sources of selection bias in identifying impacts; our empirical approach utilizes the panel structure of the data to control for time-invariant unobservables at the country level by applying propensity-score-matched double difference comparison.Our results suggest that introducing Independent Regulation in the electricity industry is effective in stimulating performance improvements: this lead to more generated electricity and better technical quality of the service. The impact on energy efficiency is positive but insignificant. The methodological lesson from this paper is that robust estimation of public reform is possible even in the absence of proper baseline survey.


Rethinking Power Sector Reform in the Developing World

Rethinking Power Sector Reform in the Developing World
Author: Vivien Foster
Publisher: World Bank Publications
Total Pages: 454
Release: 2019-12-05
Genre: Science
ISBN: 1464814430

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During the 1990s, a new paradigm for power sector reform was put forward emphasizing the restructuring of utilities, the creation of regulators, the participation of the private sector, and the establishment of competitive power markets. Twenty-five years later, only a handful of developing countries have fully implemented these Washington Consensus policies. Across the developing world, reforms were adopted rather selectively, resulting in a hybrid model, in which elements of market orientation coexist with continued state dominance of the sector. This book aims to revisit and refresh thinking on power sector reform approaches for developing countries. The approach relies heavily on evidence from the past, drawing both on broad global trends and deep case material from 15 developing countries. It is also forward looking, considering the implications of new social and environmental policy goals, as well as the emerging technological disruptions. A nuanced picture emerges. Although regulation has been widely adopted, practice often falls well short of theory, and cost recovery remains an elusive goal. The private sector has financed a substantial expansion of generation capacity; yet, its contribution to power distribution has been much more limited, with efficiency levels that can sometimes be matched by well-governed public utilities. Restructuring and liberalization have been beneficial in a handful of larger middle-income nations but have proved too complex for most countries to implement. Based on these findings, the report points to three major policy implications. First, reform efforts need to be shaped by the political and economic context of the country. The 1990s reform model was most successful in countries that had reached certain minimum conditions of power sector development and offered a supportive political environment. Second, countries found alternative institutional pathways to achieving good power sector outcomes, making a case for greater pluralism. Among the top performers, some pursued the full set of market-oriented reforms, while others retained a more important role for the state. Third, reform efforts should be driven and tailored to desired policy outcomes and less preoccupied with following a predetermined process, particularly since the twenty-first-century century agenda has added decarbonization and universal access to power sector outcomes. The Washington Consensus reforms, while supportive of the twenty-first-century century agenda, will not be able to deliver on them alone and will require complementary policy measures


Utilities Reforms and Corruption in Developing Countries

Utilities Reforms and Corruption in Developing Countries
Author: Antonio Estache
Publisher: World Bank Publications
Total Pages: 30
Release: 2006
Genre: Cell phones
ISBN:

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This paper shows empirically that "privatization" in the energy, telecommunications, and water sectors, and the introduction of independent regulators in those sectors, have not always had the expected effects on access, affordability, or quality of services. It also shows that corruption leads to adjustments in the quantity, quality, and price of services consistent with the profit-maximizing behavior that one would expect from monopolies in the sector. The results suggest that privatization and the introduction of independent regulators have, at best, only partial effects on the consequences of corruption for access, affordability, and quality of utility services.


Water, Electricity, and the Poor

Water, Electricity, and the Poor
Author: Kristin Komives
Publisher: World Bank Publications
Total Pages: 308
Release: 2005
Genre: Business & Economics
ISBN: 9780821363423

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This book reviews the prevalence and variants of consumer subsidies found in the developing world and the effectiveness of these subsidies for the poor. It places consumer subsidies in a broader social protection framework and compares them with poverty-focused programmes in other sectors using a common metric. It concludes that the most common subsidy instruments perform poorly in comparison with most other transfer mechanisms. Alternative consumption and connection subsidy mechanisms show more promise, especially when combined with complementary non-price approaches to making utility services accessible and affordable to poor households. The many factors contributing to those outcomes are dissected, identifying those that can be controlled and used to improve performance.


Infrastructure Regulation

Infrastructure Regulation
Author: Darryl S. L. Jarvis
Publisher: World Scientific
Total Pages: 622
Release: 2011
Genre: Law
ISBN: 9814335746

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Ch. 1. Regulating infrastructure : a review of the issues, problems, and challenges / Ed Araral [und weitere] -- pt. I. Problems, issues, and perspectives in regulation, regulatory design and outcomes. ch. 2. Infrastructure regulation : what works, why, and how do we know? / Judith Clifton [und weitere]. ch. 3. Does political accountability matter for infrastructure regulation? : the case of telecommunications / Farid Gasmi, Paul Noumba and Laura Recuero Virto. ch. 4. Entry relaxation and an independent regulator : performance impact on the mobile telecoms industry in Asia / Chalita Srinuan, Pratompong Srinuan and Erik Bohlin -- pt. II. Electricity sector regulation & governance. ch. 5. Risk, regulation and governance : institutional processes and regulatory risk in the Thai energy sector / Darryl S.L. Jarvis. ch. 6. Electricity tariff regulation in Thailand : analyses and applications of incentive regulation / Puree Sirasoontorn. ch. 7. Regulating power without a five year plan : institutional changes in the Chinese power sector / Kun-Chin Lin, Mika Purra and Hui Lin. ch. 8. The Indonesian electricity sector : institutional transition, regulatory capacity and outcomes / Mika Purra. ch. 9. Regulating the independent power producers : a comparative analysis of performance of Andhra Pradesh, Gujarat, and Tamil Nadu in India / Rajendra Kumar. ch. 10. Partial privatization and nested regulation : institutional choices in public sector and regulatory reform / Sunil Tankha. ch. 11. The electricity industry reform in Korea : lessons for further liberalization / Junki Kim and Kyuhyun Kim -- pt. III. Water sector regulation & governance. ch. 12. Regulatory independence and contract incompleteness : assessing regulatory effectiveness in water privatization in Manila / Xun Wu, Loit Batac and Nepomuceno A. Malaluan. ch. 13. Can regulation improve the performance of government-controlled water utilities? / David Ehrhardt and Nils Janson. ch. 14. Effects of regulatory quality and political institutions on access to water and sanitation / Andrew B. Whitford, Helen Smith and Anant Mandawat. ch. 15. The regulation of water infrastructure in Italy : origins and effects of an 'hybrid' regulatory system / Alberto Asquer. ch. 16. Measuring effectiveness of regulation across a river system : a welfare approach / Alex Coram and Lyle Noakes. ch. 17. Private sector participation and regulatory reform in water supply : the Southern Mediterranean experience / Edouard Perard. ch. 18. Tempered responsiveness through regulatory negotiations in the water sector : managing unanticipated innovations emerging from participation reforms / Boyd Fuller and Sunil Tankha


Infrastructure and Public Utilities Privatization in Developing Countries

Infrastructure and Public Utilities Privatization in Developing Countries
Author: Emmanuelle Auriol
Publisher: World Bank Publications
Total Pages: 48
Release: 2006
Genre: Economia del sector pb͠lico
ISBN:

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The paper analyzes governments' tradeoff between fiscal benefits and consumer surplus in privatization reforms of noncompetitive industries in developing countries. Under privatization, the control rights are transferred to private interests so that public subsidies decline. This benefit for tax-payers comes at the cost of price increases for consumers. In developing countries, tight budget constraints imply that privatization may be optimal for low profitability segments. For highly profitable public utilities, the combination of allocative inefficiency and critical budgetary conditions may favor public ownership. Finally, once a market segment gives room for more than one firm, governments prefer to regulate the industry. In the absence of a credible regulatory agency, regulation is achieved through public ownership.