The public benefits agenda in power sector reform^[1]

Over the last ten years, long-held assumptions about the structure of the power sector have overturned. In place of publicly-owned vertically integrated monopolies, a new model of private ownership and competition is emerging. This paper analyzes the eclipse of the old model and the forces that have led to emergence of a new model. It examines what caused the change, the contours of the new model and the role of international donor agencies in promoting this model. The paper also argues that public benefits must be explicitly provided for in privatized, competitive structures. These benefits include environmental, social and governance concerns. The paper discusses the issues at stake in each of these areas.