Document Type : Research Paper
Authors
1 Electricity and Energy Economics Department- Niroo Research Institute (NRI)
2 School of Electrical and Computer Engineering (ECE)-University of Tehran
Abstract
Features such as natural monopoly and economies of scale in network industries such as the electricity industry led to the fact that in most countries, the ownership and management of the mentioned industries in a vertically integrated form is provided to the government. Such an attitude prevailed in most countries until the end of the 1980s. Technological advances in these industries, including the electricity industry, led to a new attitude in the 1990s. Based on this view, vertically integrated network industries include separate activities that have different economic characteristics from competitive to monopoly levels, and this provided the basis for reforms the power sector.
This article is organized in three parts with analytical-descriptive methods as well as a case study research. In the form of a theoretical framework, the first part has examined the key components of the electricity sector reforms and the importance of their sequence, and the second part has analyzed the process of China's electricity sector reforms in the five stages based on the obtained theoretical framework. The third part is dedicated to providing recommendations for Iran's electricity industry. The findings of this research show that China's experience in the gradual separation of policy making, regulation and service provision affairs from each other, decentralization through the mechanism of provincial and local governments and the commercialization of state-owned companies can bring lessons learned for Iran's electricity industry.
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