**_14_**

improvements rather than any differences in the inherent ability of most of the business to achieve the same levels of productivity growth in the medium term. 6

**Table 2: Productivity growth amongst distributors in England and Wales, 1971-1993 (% p.a.)**

|_Company_|_. 1971-1993_|_1971-1990_<br>_1991-1993_|
|---|---|---|
|................................................................................<br>London<br>................................................................................|.................................................<br>4.2<br>.......................................................|.............................................................<br>.........................................<br>..............................................<br>4.2<br>4.5<br>......................................................................|
|Seeboard|2.8|2.7<br>3-9|
|Southern<br>....................................................|3.6<br>.................**.....**.............................|3.6<br>I 3.6<br>......<br>.......................................<br>........................................|
|SouthWest<br>....................................................|2.1<br>................**.**.**.....**.............................|2.2<br>1.2<br>......<br>............................................<br>..............................|
|SouthWales|2.7|2.2<br>6.1|
|Manweb<br>................................................................................|3.2<br>..............................................................................|2.5<br>7.8<br>....<br>r-..............<br>r...........-.......-.....<br>r<br>........|
|Eastern<br>|3.8|<br> <br> <br><br>2.5<br>11.7<br>l"<br>II|
|................................................................................<br>East Midlands|......................................................<br>2.2|................................................<br>..........<br>...........<br>..........................<br>2.4<br>2.0|
|Norweb<br>...........<br>I....................................................................|2.2<br>........................................................|2.2<br>2.2<br>..........................................................<br>....................................................................|
|Yorkshire|2.1|2.1<br>1.7|
|Northem|2.3|2.4<br>16|
|Industry Average|**2.2**|. 1.9<br>**4.5**|

Source: P. _Burns_ and T.G. Weyman-Jones (1994) _TILe Performnance of the Electricity Distribution Business in England and Wales, 19711993. CRI_ Discussion paper No. 8. Cipfa: UK

# 4. Generating information while designing a concession

In addition to ensuring that it meets the main fiscal and other economic objectives assigned to the privatisation process, the design of the concession rules should:

- Attract a sufficient number of bidders to facilitate a competitive process;

...but also....

- Facilitate the provision of sufficient information by the authorities to reduce both market and regulatory risk and

- 6 Similar applied research on yardstick competition is currently under way in Brazil for the water sector. See for a rough draft, Crampes, Diette and Estache (1997), "What could regulators learn from yardstick competition? Lessons for Brazil's water and sanitation sector", mimeo, The World Bank, currently being significantly improved by the Planning Ministry in Brazil.