Publication: International Experience with Private Sector Participation in Power Grids: Peru Case Study
Date
2012-01
ISSN
Published
2012-01
Author(s)
World Bank Group
Abstract
This case study is part of an analytical
effort aimed at advising World Bank staff and country
clients on options for private sector participation (PSP) in
transmission and distribution. The report is based on data
collected on the Peruvian case, the review of literature, as
well as on a set of interviews held with power sector
agencies, including the regulator and system operator, power
sector companies and experts in the field. The problems of
the power sector were linked to its structure, a legal
framework that guaranteed a public monopoly and the use on
subsidies as a political tool to redistribute income and
control inflation. The crisis justified measures in line
with a thorough neoliberal economic reform that was
underway. This reform included the reduction of an oversized
public sector and the unbundling and privatization of the
power sector. The privatization of transmission was
justified on the grounds of attracting fresh capital and
achieving greater efficiency. PSP in distribution was
justified on the same grounds, plus another important
factor, it was seen also as a way to prevent or minimize
government interference on the day‐to‐day operations of
utilities and, most important, to avoid the politicization
of electricity tariffs.
Citation
“World Bank Group. 2012. International Experience with Private Sector Participation in Power Grids : Peru Case Study. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/23616?show=full License: CC BY 3.0 IGO.”