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Power sector regulatory reform in transition economies: Progress and lessons learned

Regulatory reform in the power sector of most transition economies has progressed. Regulatory independence, however, is still limited with direct (statutory) and indirect political input influencing decision making. Further reform is required to secure power tariff increases and private sector participation. Both should improve sector performance, notwithstanding current market sentiment towards the sector and the region. This paper discusses the advances made in regulatory reform, with a focus on end user regulation rather than network access. It suggests that regulatory rules, enforceable in an independent forum such as international arbitration, should be written into contracts to ensure investor security.