Privatization of the Electricity Sector in Afghanistan and Its Effects on Reducing Losses and Energy Prices in the Market
Massoud Danishmal,
Wahidullah Zgham,
Dost Mohammad Sarwari,
Zainullah Serat
Issue:
Volume 11, Issue 4, July 2022
Pages:
83-90
Received:
31 August 2022
Accepted:
13 September 2022
Published:
28 September 2022
DOI:
10.11648/j.ijepe.20221104.11
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Views:
Abstract: Privatization is one of the measures that the government must implement to reform its economy and administrative system. The development of society has always been accompanied by an increase in demand for electricity. One of the characteristics of a competitive market is the lack of power of market managers to exploit demand fluctuations. In countries where the electricity sector has been privatized, the supply and the bid price of electricity are competitive among suppliers. Electricity manufacturers and suppliers must have a high degree of energy quality in order to be highly reliable in a competitive electricity market. The main purpose of privatizing the electricity sector is to combat undesirable monopolies because imposing the power of a company disrupts a competitive environment in the market. In this article, the necessity and benefits of privatization of the electricity sector in the country and a practical method that in a competitive market, the amount of waste and energy prices are significantly reduced. By privatizing the electricity sector, we can manage the critical situation of the country's energy sector. If the electricity industry is monopolized by the Afghan government, it will not be possible to respond to the needs of society with good quality and reasonable and low prices, and the productivity in this industry will be lower than expected. By carrying out the restructuring of Breshna company, separating Breshna company into three major productions, transmission and distribution companies, creating competition in production and supply, free access, increasing and improving economic productivity in various sectors of the electricity industry, security of supply, reducing losses, consumption management, reducing the cost price, optimal use of financial resources, the balance between income and expenses, increasing the quality of services, developing technology, protecting the environment and the possibility of sustainable development of this industry will be realized.
Abstract: Privatization is one of the measures that the government must implement to reform its economy and administrative system. The development of society has always been accompanied by an increase in demand for electricity. One of the characteristics of a competitive market is the lack of power of market managers to exploit demand fluctuations. In countr...
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