Abstract

Strategic goal of privatization can be economic, social and cultural development, Decreases of companies' costs and size of the government. This study has been done in the framework of benchmarking method in order to transfer experience and the achieved results from reform in different countries and to present executive strategies to the electric power industry policy makers and planners.It is proposed that the government should plan and put into action a comprehensive program for streamlining the path and the atmosphere of the activity of the business institutions and empowerment and support of non-governmental sector and conveyance of the government properties to the non-governmental sector in a comprehensive and integrated manner. Establishment and activation of need infrastructure for accomplishment of the government responsibilities and protection of the market activities are necessary conditions in entering the process of privatization of the electric power industry. Furthermore, the extension of competition atmosphere and increase of compatibility of economic institutions are the requirements of the success of the privatization program. Reforms in electric power industry and privatization of power plants are time consuming processes and any hastiness in these processes will lead the privatization to the path in which not only the expected goals are not achieved, but also in addition to demolish of national wealth's, it will result in extensive economic, social and political consequences. The way conveyance of power plants, shall not lead to another monopoly. As one of the most important prerequisites of having competitive market and encouragement of private sector to have presence in electricity market, establishment of competition in wholesale and also retail podiatry of electric power. In other words, establishment of production capacity in proportionate with the consumption peak, formation of electricity stock exchange and possibility of competition among the suppliers at the retail level guarantee the competition and optimal behavior in the market.

JEL Classification: H100, H110, H3, H4, H5, H6, K2, O2, O4

Keywords: Privatization, Monopoly, Competition, Reform