During the last decade of the 20th century the electricity supply industry (ESI) underwent major evolvement and restructuring. Until very recently most network industries (mainly the ESI, and also gas, water and telecommunications) were considered to be natural monopolies. Their size, networks, capital-intensive nature and their sensitive services to the public meant, in most cases, exclusive government ownership and control. Recently, however, technological progress, particularly in information technologies and telecommunications as well as development of regulatory instruments, has enabled the introduction of a market mechanism into these traditional monopolies. One main consideration is that governments no more have the resources and intention in financing the capital-intensive projects like power stations. Governments are now more interested in financing social services rather than electricity services, which the private sector can more profitably handle. Developments vary from one country, or region, to another but a general pattern of five phases has developed.
Evolvement of the electricity sector - utility for the future, Page 1 of 2
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