This study reviews the electricity sector experiences during the 1990s of four countries that are candidates for EU accession (Hungary, Lithuania, Poland, and Turkey) and six former states of the Soviet Union (Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Tajikistan, and Ukraine). Lessons are drawn from these case studies as well as from Russia, Romania, Armenia, and Albania. The study provides four key lessons relating to: (a) the overriding need for comprehensive commercialization of the sector before reforms are attempted, (b) the need to adjust tariffs to cover costs of supply and to de-politicize tariff setting procedures, (c) the need to select market structures appropriate for each country, and (d) the need to protect the targeted poorer consumers from rising costs. Good practices are identified. An action agenda is outlined, in light of the declining interest of strategic investors in emerging markets. This book is published as #8 in the World Bank Working Paper...

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