Privatisation of Electricity Distribution Companies�A Way Forward?

Afia Malik

No 2022:52, PIDE Knowledge Brief from Pakistan Institute of Development Economics

Abstract: The private sector has long been promoted as a solution to the service delivery gap and to overcome financial constraints faced by the developing countries. The general belief is that state-owned utilities have no incentive to improve (Estrin and Pelletier, 2018). Political pressures and rent-seeking activities do not allow them to operate efficiently. The recruitment of managerial staff is under political pressure rather than merit, thus compromising management efficiency in the distribution utility. Therefore, the expectation is that the private management/ownership with the profit motive will lead to efficiency gains and cost savings, besides improving service delivery (Scott and Seth, 2013).

Keywords: Privatisation; Electricity; Distribution; Companies (search for similar items in EconPapers)
Pages: 8 pages
Date: 2022
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