Revisiting Reform in the Energy Sector : Lessons from Georgia

This paper reviews the changes in the supply of electricity and gas from the perpective of households, utility operators, and the government. The objective is to highlight lessons from the reforms implemented and to apply them to the future reform program planned for the rest of the energy sector. The paper concludes that improved service quality and the increased supply of clean and subsidized natural gas have offset the potentially negative impact of higher electricity prices. Despite very good performance by the privatized electricity distribution company in Tbilisi, the sustainability of the reform program is still in doubt. Consolidated government expenditures on energy have increased, but to a large extent this simply recognizes costs that were incurred, but not paid, prior to reform. Existing subsidies to households for electricity provide compensation beyond levels that produce large welfare gains. Changing the subsidy system to base targeting on actual levels of electricity consumption while providing enough compensation to ensure the household received a basic level of electricity, would be one option to improve subsidy targeting.

Bibliographic Details

Main Authors:	Gonzalez, Hernan, Lampietti, Julian A., Wilson, Margaret, Hamilton, Ellen, Vashakmadze, Sergo
Language:	English en_US
Published:	Washington, DC: World Bank 2004
Subjects:	ADVERSE IMPACT, BASKET OF GOODS, BUDGET CONSTRAINTS, COAL, CONSUMERS, CONSUMPTION LEVELS, CONSUMPTION PATTERNS, COOKING, CRUDE OIL, CRUDE OIL PRICES, DIRTY FUEL, DISTRIBUTION COMPANIES, DISTRIBUTION COMPANY, DISTRIBUTION OF ELECTRICITY, DISTRICT HEATING, EFFICIENT USE, ELECTRICITY, ELECTRICITY CONSUMPTION, ELECTRICITY DISTRIBUTION, ELECTRICITY GENERATION, ELECTRICITY LAW, ELECTRICITY PRICE, ELECTRICITY PRICES, ELECTRICITY REFORM, ELECTRICITY SECTOR, ELECTRICITY SUBSIDIES, ELECTRICITY SUPPLY, ELECTRICITY TARIFF, ENERGY ACCESS, ENERGY CONSUMPTION, ENERGY EXPENDITURES, ENERGY MIX, ENERGY PRICES, ENERGY SECTOR REFORM, ENERGY SERVICES, ENERGY SUBSIDIES, ENVIRONMENTAL OUTCOMES, EXCHANGE RATE, EXPENDITURES ON ELECTRICITY, EXPENDITURES ON ENERGY, FUEL, FUEL CONSUMPTION, FUEL PRICES, FUEL TYPE, FUELS, GAS, GAS IMPORTS, GAS SECTORS, GAS SUPPLY, GAS TARIFFS, GAS TRANSMISSION, GDP, GENERATION ASSETS, GOVERNMENT EXPENDITURES, GOVERNMENT SUBSIDIES, GROSS DOMESTIC PRODUCT, HOUSEHOLD ENERGY, HOUSEHOLD FUEL, HOUSEHOLD GOODS, HYDROELECTRIC PLANTS, IMPORTS, INCOME, INCOME DISTRIBUTION, INCOME GROUPS, KEROSENE, KILOWATT HOUR, KINKED DEMAND CURVE, LEGISLATION, LIVING STANDARDS, LOW-INCOME HOUSEHOLDS, ENERGY SECTOR, REFORM POLICY, RESEARCH, HOUSEHOLD, WELFARE, NETWORK FUNCTIONS, ENERGY, ENERGY TARIFFS, HEALTH ISSUES, ENVIRONMENTAL ISSUES, SUBSIDIES, FUELWOOD, HOUSEHOLDS, BUDGET PROCESS,
Online Access:	http://documents.worldbank.org/curated/en/2003/12/2969237/revisiting-reform-energy-sector-lessons-georgia https://hdl.handle.net/10986/15055
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