Impact of reform and privatization on consumers: A case study of power sector reform in Orissa, India

Orissa is the first state in India to have undergone reform in the power sector, with the government withdrawing its control. The model of this reform is known as the WB–Orissa model. The goal of this paper is to examine the impact of this reform on consumers of electricity, which has been measured using multiple regression models. The variables represent the parameters that consumers are most interested in, and the regression coefficients represent the weights of the corresponding variables. The data were collected using a survey methodology. The impact of reform was found to be mixed. Some groups of consumers saw benefits, while others felt a negative impact. A focus group study was conducted to identify the variables of interest to consumers of electricity. The model was used to estimate consumer benefit and was validated using primary data and structural equation modeling. The study revealed beneficial aspects of reform and areas with no benefits.

► Linear regression model with seven variables explains consumer benefit.
► Governance issue exists after power sector reform of Orissa.
► Reform benefited most consumers with a few exceptions.
► Reform affected agricultural consumers.