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. Keywords: Iran distribution companies, Electricity distribution company, Monopoly, Privatization, Distribution systems.
Highlights
Electric power distribution is the final level of the electricity supply chain
Liberalization, privatization, deregulation and devolution of government functions to the private sector are all categories that in recent decades have been regarded by economists and policy-makers, and they are considered as a way to rationalize the economic structure of society, adjusting the size of government, mobilizing private funds, increasing the efficiency of the companies and reducing the burden of government services
After the privatization of the distribution companies, subsidies to convert to the detriment of the private sector and their demands that the government is a serious disruption in the event of non-payment of services
Summary
Electric power distribution is the final level of the electricity supply chain From this point of view, structure and functions of distribution companies are very important for Moghimi et al / Indian Journal of Science and Technology 2020;13(14):1512–1522 consumers’ satisfaction and the economic sustainability of the power industry [1,2,3,4,5,6]. Considering the current situation of electricity distribution networks from the perspective of passive defense, privatization of electricity distribution companies and the transfer of the management of its activities to the private sector would be highly sensitive [13]. The privatization process of electricity distribution companies in Iran is reviewed and section 5 concludes the paper
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