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close this bookRural Energy and Development: Improving Energy Supply for Two Billion People (WB, 1996, 132 p.)
close this folderChapter four - Options for rural electrification
View the document(introduction...)
View the documentProgress to date
View the documentPricing and financial policies
View the documentCost-effectiveness and the choice of alternatives
View the documentCosts of grid supplies
View the documentReducing initial investment costs by using appropriate design standards
View the documentMicro-grids supplied by diesel generators
View the documentElectricity supplies from renewable energy sources
View the documentRegulatory and price reforms, unbundling, and privatization
View the documentImplication for rural electrification
View the documentApproaches

Regulatory and price reforms, unbundling, and privatization

Extending electricity supplies to large numbers of people and growing markets in developing countries will require financially sound and efficiently managed electricity supply industries However. despite a six fold increase in electricity generating capacity and output since 1970 and the rapid increase in the number of customers served. by the late 1980s the financial positions and efficiency of electricity supply industries had deteriorated badly in many countries. Several of these countries are now attempting to reform their electricity supply industry and its ownership and regulation so that it can be operated on commercial principles and under independent management (see World Bank 1993b, 1994d). Box 4.5 summarizes the key aspects of the reform process and provides some examples.