This paper evaluates the effects of the establishment of an Independent Regulatory Authority (IRA) on electricity sector performance in developing countries. The study assesses the impact of such reform on electricity generated, technical quality of the service and country energy efficiency. Double-Difference and Matching are used to address sources of selection bias in identifying impacts; our empirical approach utilizes the panel structure of the data to control for time-invariant unobservables at the country level by applying propensity-score-matched double difference comparison.Our results suggest that introducing Independent Regulation in the electricity industry is effective in stimulating performance improvements: this lead to more generated electricity and better technical quality of the service. The impact on energy efficiency is positive but insignificant. The methodological lesson from this paper is that robust estimation of public reform is possible even in the absence of proper baseline survey.

'This excellent book makes a major contribution to the literature on regulation in a pro-poor direction for urban water supply. It is extremely relevant for policy-makers striving to achieve the Millennium Development Goal for halving the share of world's population without access to clean and affordable water.' Andrew Nickson, University of Birmingham, UK The aim of this book is to present the potential benefits as well as the challenges of introducing a more formal economic regulatory process into the urban water sector arena in lower-income countries. There is a particular focus upon the impact this may have on the poorest, the informal, slum and shanty dwellers of the rapidly growing cities. Economic regulation, usually introduced in the context of private operation of monopoly water supply, can deliver objectivity and transparency in the price-setting process for public as well as private providers. The book describes and analyses these issues through a consideration of ten country case studies. As a starting point, the current situation for the provision of water and sanitation services for the poorest through non-regulated public providers in India and Uganda is reviewed. Comparative chapters are then presented on Ghana, Philippines, Bolivia, Jordan, Zambia and Indonesia, all with varying degrees of private sector involvement and regulation. Finally the experiences of two richer countries are considered - Chile and England, countries with the longest experience of economic regulation and the 'most privatized' suppliers. In all cases there is a focus on the very necessary role of customer involvement in price-setting and service monitoring and on the role of alternative (private) service providers.

This book reviews the prevalence and variants of consumer subsidies found in the developing world and the effectiveness of these subsidies for the poor. It places consumer subsidies in a broader social protection framework and compares them with poverty-focused programmes in other sectors using a common metric. It concludes that the most common subsidy instruments perform poorly in comparison with most other transfer mechanisms. Alternative consumption and connection subsidy mechanisms show more promise, especially when combined with complementary non-price approaches to making utility services accessible and affordable to poor households. The many factors contributing to those outcomes are dissected, identifying those that can be controlled and used to improve performance.

Utility performance, especially in developing countries is still working toward the standard necessary to deliver best practice. Utility Benchmarking and Regulation in Developing Countries examines performance monitoring and regulation as a prominent efficiency enhancement tool and clarifies many of the unknowns regarding the design and approach surrounding the area of utility management. Principles and practices are linked in a way that is informative and accessible, highlighting the challenges facing those who are trying to improve performance in the water sector. Operational settings are complex and unpredictable in developing countries due to inadequate infrastructure planning and this book makes clear which systems work best in these situations. Utility Benchmarking and Regulation in Developing Countries discusses performance monitoring in the critical areas of utility management that achieve sustainable performance goals: Performance development planning Modes of performance monitoring Provocative approaches to incentives creation Monitoring through high incentive plans Customer relations monitoring Pro-poor oriented monitoring Careful use of partial performance indicators Proposed indicators for assessing governance incentives A case study on the National Water and Sewerage Corporation, Uganda is included in the book detailing the difficulties in discerning performance progress based on partial performance indicators. It underlines disparities in basing performance conclusions on partial performance indicators on one hand and aggregate analysis using modern benchmarking toolkits on the other. This is an excellent handbook for utility monitors or regulators whose primary duty is to oversee performance management. It is a valuable resource for decision-makers, analysts, and policy-makers and can be used in capacity-building programs (both in-house and in universities) around the world.

During the 1990s, a new paradigm for power sector reform was put forward emphasizing the restructuring of utilities, the creation of regulators, the participation of the private sector, and the establishment of competitive power markets. Twenty-five years later, only a handful of developing countries have fully implemented these Washington Consensus policies. Across the developing world, reforms were adopted rather selectively, resulting in a hybrid model, in which elements of market orientation coexist with continued state dominance of the sector. This book aims to revisit and refresh thinking on power sector reform approaches for developing countries. The approach relies heavily on evidence from the past, drawing both on broad global trends and deep case material from 15 developing countries. It is also forward looking, considering the implications of new social and environmental policy goals, as well as the emerging technological disruptions. A nuanced picture emerges. Although regulation has been widely adopted, practice often falls well short of theory, and cost recovery remains an elusive goal. The private sector has financed a substantial expansion of generation capacity; yet, its contribution to power distribution has been much more limited, with efficiency levels that can sometimes be matched by well-governed public utilities. Restructuring and liberalization have been beneficial in a handful of larger middle-income nations but have proved too complex for most countries to implement. Based on these findings, the report points to three major policy implications. First, reform efforts need to be shaped by the political and economic context of the country. The 1990s reform model was most successful in countries that had reached certain minimum conditions of power sector development and offered a supportive political environment. Second, countries found alternative institutional pathways to achieving good power sector outcomes, making a case for greater pluralism. Among the top performers, some pursued the full set of market-oriented reforms, while others retained a more important role for the state. Third, reform efforts should be driven and tailored to desired policy outcomes and less preoccupied with following a predetermined process, particularly since the twenty-first-century century agenda has added decarbonization and universal access to power sector outcomes. The Washington Consensus reforms, while supportive of the twenty-first-century century agenda, will not be able to deliver on them alone and will require complementary policy measures

Institutional Governance and Regulation of Water Services aims to provide the key elements of policy, governance and regulation necessary for sustainable water and sanitation services. On policy matters, it covers important aspects including separation of policy and delivery, integrated planning, sustainable cost recovery, provisions for the poor, and transparency. Regulation and Regulatory Bodies are presented in their various forms, with discussion of why some form of independent scrutiny is essential for sustainability. The focus is on what works and what does not, based on consideration of basic principles and on case studies in both developing and developed countries. The early chapters discuss the key elements, with later chapters considering how these elements have come together in successful reforms of public sector operations. A chapter is devoted to the successful use of the private sector based on lessons learnt from ‘failures’ of private contracts and the need for the application of sound procurement principles. The current trend is for a public sector model which benefits from business approaches, the so-called corporatised public utility. Experience since the publication of the first edition in 2007 reinforces the importance of the key elements for sustainable water services. This second edition brings the material up to date and with some increased emphasis on public participation in its many forms. It refers to the opportunity for progress provided by the UN Declaration of Water and Sanitation as a Human Right, but only if it is implemented in a practical and sustainable way. Institutional Governance and Regulation of Water Services is aimed at providing an informative source for national and local governments responsible for water policy, for water utility managers, and for students who will be the policy makers of tomorrow. It is a teaching aid for courses on water policy, governance and regulation. About the Author: Michael Rouse is a Distinguished Research Associate at the University of Oxford and manages the Institutional Governance and Regulation module of the University’s MSc Course on Water Science, Policy and Management. He was formerly Head of the Drinking Water Inspectorate in London and has extensive knowledge and experience of water governance and regulation, including all aspects of audit and enforcement, and the governance issues related to both public sector management and privatisation. He has wide knowledge of water technical and operational matters, based on his applied research and development background at the Water Research Centre, where he spent 9 years as Managing Director. Michael has a good understanding of international water matters and advises governments on policy and regulation. He is a Past President of the International Water Association. He is a visiting professor at Tsinghua University in Beijing and at the Shanghai Academy of Social Science. In 2000 he was awarded the CBE (Commander of the British Empire) for his professional services.