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Energy Sector Liberalisation: Pricing and Subsidy Reform and the Poor

Journal Article


Abstract


  • This article revisits the recent evidence on the state of reforms and innovative pricing and subsidies

    schemes to unravel the hiatus between the theory and practice of pricing and subsidies policies and sectoral reforms in developing countries.

    The energy sector reforms commencing in the 1990s in developing countries were aimed at reducing

    the inefficiency of the sector and remove the energy supply and financial deficits that impeded social

    and economic progress in these countries. It gradually became evident post-reform that the restructuring,

    market reform, and institutional reform of the sector, though necessary, were not sufficient to ensure the

    socio-economic success of the market-oriented reforms.

    Instead, the pre-reform pricing and subsidy schemes had partially acheived their economic and social

    purpose. However, the burden of the policies grew to unsustainable levels and became the source of

    many ills of the sector and the economy such as poor technical and financial performance of the sector

    and ballooning fiscal deficit leading to the need for subsequent changes. Energy subsidies were increasingly serving the better-off groups leaving no surplus to increase the quantity and quality supply and

    extend the service to those deprived of access to modern commercial energy in many countries.

Publication Date


  • 2015

Citation


  • Jamasb, T. & Nepal, R. (2015). Energy Sector Liberalisation: Pricing and Subsidy Reform and the Poor. IAEE Energy Forum, 5-6.

Number Of Pages


  • 1

Start Page


  • 5

End Page


  • 6

Place Of Publication


  • United Kingdom

Abstract


  • This article revisits the recent evidence on the state of reforms and innovative pricing and subsidies

    schemes to unravel the hiatus between the theory and practice of pricing and subsidies policies and sectoral reforms in developing countries.

    The energy sector reforms commencing in the 1990s in developing countries were aimed at reducing

    the inefficiency of the sector and remove the energy supply and financial deficits that impeded social

    and economic progress in these countries. It gradually became evident post-reform that the restructuring,

    market reform, and institutional reform of the sector, though necessary, were not sufficient to ensure the

    socio-economic success of the market-oriented reforms.

    Instead, the pre-reform pricing and subsidy schemes had partially acheived their economic and social

    purpose. However, the burden of the policies grew to unsustainable levels and became the source of

    many ills of the sector and the economy such as poor technical and financial performance of the sector

    and ballooning fiscal deficit leading to the need for subsequent changes. Energy subsidies were increasingly serving the better-off groups leaving no surplus to increase the quantity and quality supply and

    extend the service to those deprived of access to modern commercial energy in many countries.

Publication Date


  • 2015

Citation


  • Jamasb, T. & Nepal, R. (2015). Energy Sector Liberalisation: Pricing and Subsidy Reform and the Poor. IAEE Energy Forum, 5-6.

Number Of Pages


  • 1

Start Page


  • 5

End Page


  • 6

Place Of Publication


  • United Kingdom