By John K. Turkson
As a part of the wave of liberalization sweeping such a lot elements of the realm, energy sectors around the world are coming lower than severe scrutiny, with a few being restructured. This ebook provides six case stories (Côte d'Ivoire, Ghana, Kenya, Zimbabwe, Uganda and Mauritius) to envision the method and implementation stories of strength area reform in Subsaharan Africa. It additionally provides a cross-country comparability that discusses the reform paths and methods selected via different nations.
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Extra info for Power Sector Reform in SubSaharan Africa
Studies are under way for the supply of Sikasso in Mali from the Ivorian network as well. iv) At the end of ﬁscal year 1995–6, total generation was 3210 GWh, of which 56 per cent was from thermal plants, and 44 per cent from hydroelectric plants. National consumption was at 2440 GWh, of which 1300 GWh was for domestic consumers and 1110 GWh for industrial consumers. Total low voltage consumers number approximately 586 000 and medium voltage consumers about 2000. 1 gives a summary of the power system in Côte d’Ivoire.
Regulatory and institutional changes that take place in the event of reform of the sector should move away from a non-transparent regulatory system and direct 20 Conceptual Issues intervention by government administration on pricing and investment decisions in the electric power companies. Regulatory Reform is very critical to the success of the reform of the power sector in developing countries. Regulatory approaches differ considerably around the world, but have underlying similarities. The regulatory mechanisms are intended to mimic the effects of competitive markets, and so ensure that companies in the sector earn a return which is similar to their cost of capital.
The issue here is for the government to make them coincide. Thus, as the government, the principal, deﬁnes the reward structure of the management, it has to take into account the agent’s objectives which may lead him to choose effort levels that are not efﬁcient. The principal-agent theoretic approach to state-owned enterprises predicts that in a situation where there is information asymmetry, that is when the manager can observe certain variables in the operation of the ﬁrm and the government cannot, the ﬁrm typically fails to achieve both allocative and internal efﬁciency (Bös, 1991).