ABSTRACT

This chapter addresses the electricity service delivery issues to the poor could be to study what the poor need and can get and should get from the service in terms of access, affordability and quality of service. There are a few empirical studies on political economy that try to explain the theoretical justification for/against privatization of the electricity sector. In some of these studies the focus is on those political economy explanations that use a rational choice framework while others focus on the irrationality of stakeholders. The pros and cons of the rate of return and price cap regulation are discussed and it is argued that price cap regulation deserves careful consideration. The literature on political economy of electricity reforms provide a significant insight into the reform processes. The study is organized around institutional and political context, regulation in practice, and the role of stakeholders.