Electricity Restructuring in Ukraine: Illusions of Power in the Power Industry?

Abstract

This paper describes the current state of restructuring in the electricity industry in Ukraine, arguing that the aim of any restructuring must be to increase efficiency, whether managerial, economic or technical. In the case of the Ukrainian power industry there is scope for all three. The current remedies proposed for this problem are competition and privatisation. The paper also shows how multi-donor teams of consultants have tried to quickly implement a complex restructuring within the industry, without a clear strategy, sequence, or adequate resources, at a time when the priorities for the industry itself have been to deal with the disturbances caused by the external political and economic environment.