Electricity privatization structural, competitive and regulatory options

Abstract Privatization is probably the most important economic and political phenomenon of this decade. This article analyses the structural, competitive, and regulatory options that are available to an existing or newly privatized electricity sector. Drawing on economic, engineering and legal insights, it presents four basic models of industry structure and examines how these structures interact with different competitive and regulatory approaches. The interactions are analysed with examples from recent US, UK and European experience. The article identifies the critical linkage between proper selection among these options and the long-term success or failure of the privatization initiative and it presents some conclusions on the causes of success and failure.