Performance evaluation not only helps to identify the source of inefficiencies but also leads to search for a possible solution for them. Within this context, the present chapter analyses the empirical evidences provided in previous chapters and identifies the source of inefficiencies in the performance of electric power and telecommunications sectors. The impact of these inefficiencies on an enterprise itself as well as on national economy is also discussed. Later, the causes of these inefficiencies are discussed in terms of the theoretical arguments from principal agent and property rights theories. Finally some alternative policy options are suggested to solve these problems.

9.2.1 Physical performance