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Richard Green - Resetting Price Controls for Privatized Utilities: A Manual for Regulators (Edi Development Studies)

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Resetting Price Controls for Privatized Utilities: A Manual for Regulators (Edi Development Studies): summary, description and annotation

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The aim of regulation is to protect consumers, while ensuring that the company remains viable and has an incentive to operate efficiently. In many developing countries private companies are replacing government agencies as owners and operators of infrastructure services. Governments must now develop new skills in economic regulation of these private providers to protect consumer interests, while also ensuring that the companies remain economically and financially sound and have incentives to operate efficiently. This manual provides new economic regulators with practical guidance on how to proceed in this fairly technical new field. Chapters cover: Revising Price Controls Procedures for Resetting a Price Control Present Value Calculations Investment and the Regulatory Asset Base The Rate of Return The Philosophy of Price Controls The Form of a Price Control Operating Costs Revenues

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title Resetting Price Controls for Privatized Utilities A Manual for - photo 1

title:Resetting Price Controls for Privatized Utilities : A Manual for Regulators EDI Development Studies
author:Green, Richard.; Rodriguez Pardina, Martin
publisher:World Bank
isbn10 | asin:0821343386
print isbn13:9780821343388
ebook isbn13:9780585261379
language:English
subjectPublic utilities--Rates, Price regulation, Privatization.
publication date:1998
lcc:HD2763.G66 1998eb
ddc:338.4/33636
subject:Public utilities--Rates, Price regulation, Privatization.
Other EDI Development Studies
(In order of publication)
Preventing Bank Crises: Lessons from Recent Global Bank Failures
Edited by Gerard Caprio, Jr., William C. Hunter,
George G. Kaufman, and Danny M. Leipziger
Enterprise Restructuring and Unemployment in Models of Transition
Edited by Simon Commander
Poverty in Russia: Public Policy and Private Responses
Edited by Jeni Klugman
Enterprise Restructuring and Economic Policy in Russia
Edited by Simon Commander, Qimiao Fan, and Mark E. Schaffer
Infrastructure Delivery: Private Initiative and the Public Good
Edited by Ashoka Mody
Trade, Technology, and International Competitiveness
Irfan ul Haque
Corporate Governancein Transitional Economies:
Insider Control and the Role of Banks
Edited by Masahiko Aoki and Hyung-KiKim
Unemployment, Restructuring, and the Labor Market
in Eastern Europe and Russia
Edited by Simon Commander and Fabrizio Coricelli
Monitoring and Evaluating Social Programs in Developing Countries:
A Handbook for Policymakers, Managers, and Researchers
Joseph Valadez and Michael Bamberger
Continued on inside back cover
Page i
Resetting Price Controls for Privatized Utilities
A Manual for Regulators
EDI DEVELOPMENT STUDIES
Richard Green
Martin Rodriguez Pardina
Resetting Price Controls for Privatized Utilities A Manual for Regulators Edi Development Studies - image 2
Page ii
Copyright 1999
The International Bank for Reconstruction
and Development / THE WORLD BANK
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
All rights reserved
Manufactured in the United States of America
First printing February 1999
The Economic Development Institute (EDI) was established by the World Bank in 1955 to train officials concerned with development planning, policymaking, investment analysis, and project implementation in member developing countries. At present the substance of the EDI's work emphasizes macroeconomic and sectoral economic policy analysis. Through a variety of courses, seminars, and workshops, most of which are given overseas in cooperation with local institutions, the EDI seeks to sharpen analytical skills used in policy analysis and to broaden understanding of the experience of individual countries with economic development. Although the EDI's publications are designed to support its training activities, many are of interest to a much broader audience. EDI materials, including any findings, interpretations, and conclusions, are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent.
The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center Inc., Suite 910, 222 Rosewood Drive, Danvers, Massachusetts 01923, U. S. A.
The backlist of publications by the World Bank is shown in the annual Index of Publications, which is available from the Office of the Publisher.
Richard Green is a senior research officer in the Department of Applied Economics at the University of Cambridge in the United Kingdom.
Martin Rodriguez Pardina is director of the Center for the Economic Study of Regulation at the Universidad Argentina de la Empresa in Buenos Aires, Argentina.
For information on the Regulatory Reform and Competion program at the World Bank's Economic Development Institute, visit: http://www.worldbank.org/edi/reform
Library of Congress Cataloging-in-Publication Data
Green, Richard, 1966
Resetting price controls for privatized utilities : a manual for
regulators / Richard Green, Martin Rodriguez Pardina.
p. cm.(EDI development studies, ISSN 1020-105X)
Includes bibliographical references (p. ).
ISBN 0-8213-4338-6
1. Public utilitiesRates. 2. Price regulation.
3. Privatization. I. Pardina, Martin Rodriguez, 1961
II. Title. III. Series.
HD2763.G66 1998
338.4'33636dc21 98-42323
CIP
Page iii
Contents
Foreword
v
Acknowledgments
vii
1. Introduction and Summary: Revising Price Controls
1
2. The Philosophy of Price Controls
5
Picture 3
Rate of Return Regulation
7
Picture 4
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