Revisiting Reform in the Energy Sector

by Lampietti, Julian A.; Gonzalez, Hernan; Lampietti, Julian A.; Wilson, Margaret

• ISBN13: 9780821356890
• ISBN10: 0821356895
• Edition: Bilingual
• Format: Paperback
• Copyright: 2004-01-01
• Publisher: World Bank

Summary

One of the harsher realities of independence for the former Soviet republics has been the loss of subsidized transfers from the center for fuel and utilities. In the years since independence, Georgians, with other 'energy poor' republics, have been subject to higher costs and declining service levels for household utilities - particularly energy. The combination of low household incomes, high international prices for fuel, the need for utilities to rely on internally generated funds for capital investment, low household incomes, and the political ramifications of removing subsidies at a time of general economic decline have led to a 'worst of all worlds' situation.'Revisiting Reforms' reviews the changes in the supply of electricity and gas in Georgia from the perspective of households, utility operators, and the government. It highlights lessons from the reforms implemented and applies them to the future reform program planned for the rest of the energy sector. The title concludes that improved service quality and the increased supply of clean and subsidized natural gas have offset the potentially negative impact of higher electricity prices.

Table of Contents

Foreword	v
Abstract	vii
Preface	ix
Acronyms and Abbreviations	xi
Executive Summary	1	(2)
1. Introduction	3	(2)
Data and Research Design	4	(1)
2. Energy Sector Reform Context	5	(6)
The Economy and Household Welfare	5	(1)
Access to Network Energy	6	(1)
Power Sector Reform	7
Energy Tariffs	5	(6)
3. Impact on Households	11	(8)
Regional Differences in Energy Expenditures	11	(1)
Composition of Energy Expenditures	12	(2)
Changes in Electricity Consumption-Tbilisi	14	(1)
Health and the Environment	15	(2)
Conclusions	17	(2)
4. Impacts on Utilities	19	(6)
Performance of AES Telasi	20	(1)
Prices	20	(1)
Subsidies	21	(1)
Service Quality	21	(1)
Enforcement	22	(1)
Structure of Arrears	23	(1)
Conclusions	23	(2)
5. Impacts on Government	25	(6)
State Support for the Energy Sector	25	(1)
Municipal Support for the Energy Sector	26	(1)
Electricity Subsidy Effectiveness	27	(3)
Conclusions	30	(1)
Annexes	31
Annex A. Converting Energy Prices into Cost per Effective BTU	31	(2)
Annex B. Environmental Outcomes	33	(2)
Annex C. Analysis of Telasi's Revenues	35