• P-ISSN 0974-6846 E-ISSN 0974-5645

Indian Journal of Science and Technology


Indian Journal of Science and Technology

Year: 2020, Volume: 13, Issue: 14, Pages: 1512-1522

Original Article

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

Received Date:03 April 2020, Accepted Date:16 May 2020, Published Date:30 May 2020


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.


  1. Demoucelle P, Harrop C, Siddle R, Van Den Branden JC. Unbundling distribution and supply (Decoupler la Distribution et la Fourniture) Technical report by Bain & Company. 2013;p. 1–18.
  2. Joskow PL. Incentive regulation in theory and practice: electricity distribution and transmission networks. Economic Regulation and Its Reform: What Have We Learned. 2014;p. 291–344.
  3. Moghimi SM, Hajjiah A, Dashti R. The Framework of Capital Governance in the Electrical Energy Distribution System. Indian J. Sci. Technol. 2018;11:2–5.
  4. Bostani A, Moghimi SM, Dashti R, Hashemi S. The Role of Preventive Major Maintenance in the Costs of Electric Energy Distribution Companies. Indian Journal of Science and Technology. 2018;p. 3–5.
  5. Bostani A, Denidni, Tayeb. Design of a new ultra wideband antenna with band rejection in WLAN frequencies. IEEE antennas and propagation society international symposium. 2008;p. 1–4.
  6. Hall D, Nguyen TA. Electricity Liberalisation in Developing Countries. SAGE Publications. 2017. doi: 10.1177/1464993416688824
  7. Z XP. Restructured Electric Power Systems. (pp. 1-309) John Wiley & Sons. 2010.
  8. Domah P, Pollitt MG. 2001.
  9. Besant-Jones JE. 2006.
  10. Rosenzweig MB, Voll SP, Pabon-Agudelo C. Power Sector Reform: Experiences from the Road. The Electricity Journal. 2004;17:16–28. doi: 10.1016/j.tej.2004.10.002
  11. DG V. UN Department of Economic and Social Affairs, Division for Sustainable Development The effects of power sector reform on energy services for the poor. 2005.
  12. Wamukonya N. Power sector reform in developing countries: mismatched agendas. Energy Policy. 2003;31(12):1273–1289. doi: 10.1016/s0301-4215(02)00187-8
  13. Ebrahimi M, Siahkali H, Sarparandeh M, Bamdadian M, Abolfazli M. Privatization of electricity distribution sector in Iran. IEEE 8th GCC Conference & Exhibition. 2015.
  14. Yousefi GR, Kaviri SM, Latify MA, Rahmati I. Electricity industry restructuring in Iran. Energy Policy. 2017;108:212–226. doi: 10.1016/j.enpol.2017.05.018


© 2020 Moghimi, Dashti, Bostani. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. Published By Indian Society for Education and Environment (iSee)


Subscribe now for latest articles and news.