By World Bank
Hungary and Kazakhstan have privatized a wide element of their electrical strength and usual gasoline industries, yet have varied thoughts. by contrast, the opposite former socialist international locations in principal and japanese Europe have privatized virtually none. Has the privatization in those international locations been a hit? What classes can different international locations research from their event? those international locations all started their reforms from diversified beginning issues. The Hungarian strength and fuel sectors had a protracted heritage of being rather good controlled. by contrast, Kazakhstan inherited items of the outdated platforms that have been designed to serve the wishes of the Soviet Union and needed to increase new agencies to control the approach. 'Privatization of the ability and common gasoline Industries in Hungary and Kazakhstan' analyzes how each one nation handled the foremost concerns fascinated about the restructuring and privatization of the ability and gasoline sectors. those matters contain: constitution, wholesale industry, hard work and administration family, regulatory framework, privatization objecties, and privatization equipment.
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Extra resources for Privatization of the power and natural gas industries in Hungary and Kazakhstan, Volumes 23-451
Sample text
Three explanations are possible: The first is that distribution companies may follow orders from KEGOC to curtail their own customers (load shedding) so that they do not take more power from the grid than they are entitled to. KEGOC may be able to enforce such orders because it is both the system manager and has management rights over the remaining state-owned distribution companies The second is that KEGOC forcibly disconnects supply points for buyers who are taking more than they have contracted for and refuse to reduce voluntarily their demand.
There is the possibility, however, that this could evolve into a spot market following the directives of the European Union to liberalize markets. The reasons why Hungary chose the single buyer model are unclear. This decision did not seem to have been based on a detailed analysis of the alternatives. Instead, it seemed to have evolved gradually out of past industry structures or to assure rapid privatization. In Hungary, the vertical separation of the industry had begun even under the former socialist government.
These two countries are interesting case studies because they have adopted different strategies for restructuring and privatization. In most respects, Hungary followed a ''textbook model. "It was well planned, well managed, orderly, competitive, transparent, and generally regarded to be free from corruption. In contrast, privatization in Kazakhstan seemed to be unplanned, rushed, opaque with little competition, and thus subject to allegations of corruption. Also the power and gas sectors are very different in these two countries.