Abstract
Privatization and liberalization of power sectors in Asian developing countries have been proceeding. When power utilities vertically integrated so far are unbundled into the power generation, transmission and distribution and retail companies, the number of stakeholders and procedures required in various sections of Regulatory institution will increase, while the regulations on electricity tariffs etc. remain unchanged from those during the pre-unbundling period. This situation will require regulatory institutions to significantly expand their role and operations. However, despite progresses in creating the framework for the sector reforms, the establishment of independent regulatory institutions necessary inplementation of budgetary measures and the capacity building of relevant human resourses are delayed. For implementation of regulatory agencies' operations in the Asian developing countries, not only seeking market efficiency and measures for market power mitigation, which are prioritized in Europe and USA, but also the following three major operations should be well taken into consideration “Stable electric power supply through private capital participation”; “stabilization (not decrease) of electricity tariffs”; and “eradication of poverty and increase of electrification rate including rural electrification”. For this, it is necessary that structure of regulatory institution is to be designed according to the level of economic development and the model of power sector reform adopted.
