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Electricity Sectors in Transition

Abstract:
This paper discusses the structural and regulatory changes that are affecting electricity sectors around the world. The direction of change is toward promoting competition in the supply of generation services, restructuring of electricity supply enterprises to clearly separate the provision of competitive generation services from monopoly transmission and distribution services, and the application of new regulations governing access to the transmission and distribution networks and the associated costs of the services provided by these networks. The potential impacts of these changes on electricity costs and prices, economic development, the distribution of income, the choice of generating technologies, research and development and the environment are discussed. Differences in the current performance and the likely future impacts of electricity sector restructuring on developing and developed countries are discussed.

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Energy Specializations: Electricity – Markets and Prices ; Electricity – Policy and Regulation; Energy and the Economy – Energy as a Productive Input; Energy and the Economy –Economic Growth and Energy Demand; Energy and the Economy – Resource Endowments and Economic Performance; Energy and the Economy – Energy Shocks and Business Cycles

JEL Codes: Q41: Energy: Demand and Supply; Prices, Q42: Alternative Energy Sources

Keywords: Electricity supply, utility regulation, Retail competition, technology diffusion, energy policy, environmental regulation

DOI: 10.5547/ISSN0195-6574-EJ-Vol19-No2-3


Published in Volume19, Number 2 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.