Abstract:
Traditionally Electricity Generation, Transmission and Distribution activities were
considered as one vertically integrated business in the past. But. by restructuring the
system these three areas can be unbundled to three separate units. This will help to
introduce increased competition of the supply and choice for the customers. In
general, by introducing restructuring, it is expected to bring about lower energy
price and lower capital expenditure for governments. Some countries have already
achieved successful results by restructuring the electricity sector but some have
come across various problems and difficulties. The aim this project is to study the
restructuring process of the electricity sector in detail and to suggest a suitable
model for Sri Lanka. In order to achieve this different industry structures have been
analysed to study the different alternatives of restructuring. Also, legal and
economic framework of restructuring, experiences in different countries and various
other factors to be considered in restructuring have been discussed. By critically
analysing the preset position in the electricity industry in Sri Lanka, important
factors to be considered in the process of restructuring the electricity sector have
been identified. Finally a suitable model for Sri Lanka has been suggested. This
project has been conducted mainly using the published material and information
accessible in the environment.
