Studying the challenges and obstacles of the privatization of electricity distribution companies

Abstract

Background/Objectives: In the past couple of decades, several counties all around the globe, decided to conduct some reforms in the way that they manage the electrical power in their countries. Even in Middle East countries like Iran have taken the path to intensively privatize their power distribution and pass it over to the non-governmental sector paving way for security, social and economic threats. For this purpose, lack of proper and optimal management results in distribution companies and the government having to explain its threats so that sovereignty could eliminate the threats or reduce their effects. This study discusses the problems of restructuring the electric power sectors and its defects in Iran distribution companies.�Methods/Statistical analysis: This paper discusses the problems of re-structuring the electrical power sectors and its defects in the distribution companies. Furthermore, this paper investigates the threats facing the privatization of electricity distribution companies. The threat of monopolization is also analysed in a separate section. Data source gathering is done during 2014-2016.�Findings:�Establishment of formal and legal framework in this regard is provided in such a way that the interests of all stakeholders, including shareholders, employees, subscribers, and government are provided.�Application/Improvements:�Establishment of formal and legal framework in this regard is provided in such a way that the interests of all stakeholders, including shareholders, employees, subscribers, and government are provided. Also, establishment of proper implementation of the privatization of electricity distribution companies in Iran.