A Primer for Efficiency Measurement for Utilities and Transport Regulators (Wbi Development Studies)

The infrastrucutre privatization wave of the 1990s changed, but did not eliminate, the government's role in the sector. The scope for introducing competition continues to be limited in many parts of infrastructure businesses, resulting in private monompolies operating at least some segments of most utilities and transport services. Among the main responsibilities of infrastructure regulators are the design and implementation of processes that will ensure the fair distribution of the gains from the transfer of services to private monompolies. Regulators must also therefore concern themselves with measuring relative efficiencies. This book, the fourth in a recent series of World Bank Institute books on infrastructure regulation, is intended to help regulators learn about the tools needed to measure efficiency. It provides an overview of the various dimensions of efficiency that regulators should be concerned with. It also summarizes the main quantification techniques available to facilitate decisions in the most common regulatory processes, and covers price caps, revenue caps, and yardstick competition. The book focuses on methodology selection, data collection, and related issues. It will be of interest to policymakers and regulators and anyone with an interest in utility and transport regulation