Bulk electricity pricing in restructured markets : lessons for developing countries from eight case studies

In 1992, the World Bank's Board of Directors approved a set of good practice principles for the power sector. In the light of the 1992 Board decision and given the continuing efforts of countries around the world to reform their sectors in line with these principles, the Bank saw substantial value in surveying and reporting on the experiences of both developed and developing countries with the process. A compilation of empirical and anecdotal information on the problems, perceptions, and successes of countries that had completed or were still pursuing power sector reforms could be useful to countries contemplating or initiating reforms of their own development strategies, institutions, and pricing policies for the sector. The results would also be useful as feedback to Bank staff involved in assistance and lending to the power sector. Recognizing this need for information, the Bank implemented a study of the pricing of bulk electricity supplies in restructured markets. The work focused on eight power systems in four countries where the reform process has already made substantial advances: the United Kingdom, Norway, the United States, and Chile.