The Single-Buyer Model : A Dangerous Path toward Competitive Electricity Markets
Many Asian, African and Eastern European countries freeing up their electricity markets are preserving an artificial monopoly over the wholesale trading of electricity even after the vertically integrated national power company is unbundled. Eviden...
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| Format: | Viewpoint |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2000/12/1346420/single-buyer-model-dangerous-path-toward-competitive-electricity-markets http://hdl.handle.net/10986/11409 |
| Summary: | Many Asian, African and Eastern European
countries freeing up their electricity markets are
preserving an artificial monopoly over the wholesale trading
of electricity even after the vertically integrated national
power company is unbundled. Evidence so far suggests that
this single buyer model has major disadvantages in
developing countries: it invites corruption, weakens payment
discipline, and imposes contingent liabilities on the
government. These disadvantages in most cases overshadow the
higher short-term costs of a bilateral contracts model where
generators contract with customers. |
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