Publication:
Regulation by Contract : A New Way to Privatize Electricity Distribution?

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dc.contributor.authorBakovic, Tonci
dc.contributor.authorTenenbaum, Bernard
dc.contributor.authorWoolf, Fiona
dc.date.accessioned2013-08-14T19:39:48Z
dc.date.available2013-08-14T19:39:48Z
dc.date.issued2003-09
dc.description.abstractIn with the performance of recently privatized electricity distribution companies. Governments complain that tariffs have increased without visible improvements in service. Investors contend that they have not earned reasonable returns on their investments. Both sides often express dissatisfaction with the new independent regulatory commissions established at the time of privatization. In particular, investors argue that the commissions have not lived up to their commitments and almost always side with consumer interests. Some investors claim that the design of the new regulatory system in many developing and transition economies is fundamentally flawed. They often recommend that independent regulatory commissions be supplemented or replaced by more explicit "regulation by contract." This paper examines whether regulation by contract or a combination of regulation by contract and regulatory independence would provide a better regulatory system for developing countries that wish to privatize some or all of their distribution systems. The paper: Describes the key characteristics of regulation by contract as it has been implemented in several developing countries Focuses on how regulatory contracts in several countries handle certain key issues (pass-through of power-purchase costs, foreign exchange fluctuations, loss reduction and the obligation to serve) Describes the strengths and weaknesses of different approaches for dealing with disputes that inevitably arise in the application of regulatory contracts Compares and contrasts some recent experiences of distribution entities in Latin America and India. Examines some of Brazil's recent problems that may have arisen because Brazil adopted a flawed variant of regulation by contract. The paper concludes with a discussion of some lessons that can be learned from the experience of several countries.en
dc.identifierhttp://documents.worldbank.org/curated/en/2003/10/2684450/regulation-contract-new-way-privatize-electricity-distribution
dc.identifier.doi10.1596/0-8213-5592-9
dc.identifier.isbn0-8213-5592-9
dc.identifier.urihttps://hdl.handle.net/10986/15078
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesWorld Bank Working Paper;No. 14
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectREGULATION
dc.subjectPURCHASING POWER
dc.subjectPURCHASE TRANSACTIONS
dc.subjectFOREIGN EXCHANGE
dc.subjectLEGAL FRAMEWORK
dc.subjectTARIFFS
dc.subjectLOSSES
dc.subjectARBITRATION
dc.subjectMEDIATION
dc.subjectAPPELLATE COURTS
dc.subjectELECTRICITY
dc.subjectINVESTORS
dc.subjectINVESTMENTS
dc.subjectREGULATORY ENTITY
dc.subjectPRIVATIZATION
dc.subjectDEVELOPING COUNTRIES
dc.subjectLEGAL FRAMEWORK
dc.subjectSERVICE DELIVERY
dc.subjectDISPUTE RESOLUTION AUTHORITY
dc.subjectBANK LOANS
dc.subjectBENCHMARK
dc.subjectBENCHMARKS
dc.subjectCOLONIALISM
dc.subjectCOMMISSIONS
dc.subjectCONSENSUS
dc.subjectCONSUMER INTERESTS
dc.subjectCONSUMERS
dc.subjectCORRUPTION
dc.subjectCOURT SYSTEM
dc.subjectDEBT
dc.subjectDECISIONMAKING
dc.subjectDEVELOPED COUNTRIES
dc.subjectECONOMIC PROBLEMS
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATES
dc.subjectEXPROPRIATION
dc.subjectFINANCIAL ASSISTANCE
dc.subjectFOREIGN CURRENCY
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN OWNERSHIP
dc.subjectGOVERNMENTAL POLICY
dc.subjectINCOME
dc.subjectINEFFICIENCY
dc.subjectINSURANCE
dc.subjectINTERNATIONAL ARBITRATION
dc.subjectINTERNATIONAL TRADE
dc.subjectLABOR COSTS
dc.subjectLABOR FORCE
dc.subjectLEGAL FRAMEWORK
dc.subjectLEGISLATION
dc.subjectPOLITICAL INTERFERENCE
dc.subjectPRIVATE SECTOR INVESTMENT
dc.subjectPUBLIC SERVICE
dc.subjectREGULATORY AGENCY
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY MECHANISM
dc.subjectREGULATORY SYSTEM
dc.subjectREGULATORY SYSTEMS
dc.subjectRISK ALLOCATION
dc.subjectSTATE GOVERNMENT
dc.subjectSTATE-OWNED ENTERPRISES
dc.subjectSUSTAINABILITY
dc.subjectTOTAL COSTS
dc.subjectTRANSITION ECONOMIES
dc.subjectWEALTH
dc.titleRegulation by Contract : A New Way to Privatize Electricity Distribution?en
dspace.entity.typePublication
okr.doctypePublications & Research::Publication
okr.doctypePublications & Research::Publication
okr.docurlhttp://documents.worldbank.org/curated/en/2003/10/2684450/regulation-contract-new-way-privatize-electricity-distribution
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid193741468769519824
okr.identifier.doi10.1596/0-8213-5592-9
okr.identifier.externaldocumentum000090341_20031105153200
okr.identifier.internaldocumentum2684450
okr.identifier.report27143
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/11/05/000090341_20031105153200/Rendered/PDF/271430PAPER0Regulation0by0contract.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.administrativeSouth Asia
okr.topicEconomic Theory and Research
okr.topicInsurance and Risk Mitigation
okr.topicInternational Terrorism and Counterterrorism
okr.topicEnvironmental Economics and Policies
okr.topicGovernance::National Governance
okr.topicFinance and Financial Sector Development
okr.unitOffice of the Vice President (SDNVP)
okr.volume1 of 1
relation.isSeriesOfPublication3e126efc-de2f-4a95-be5b-bd2e430a4843
relation.isSeriesOfPublication.latestForDiscovery3e126efc-de2f-4a95-be5b-bd2e430a4843
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