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EE economics help please. Is my research question appropriate?

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Well I want to do my EE in economics about the privatization of the electricity in some parts of Madagascar but I want to explain you about the current situation first.

So the JIRAMA was the sole supplier and distributor of the electricity in Mahajanga (that's the name of the part of Madagascar that I want to study) until two years ago because of the lack of infrastructures. Actually as it is a state-owned, the Government limits the money that JIRAMA can use. So the Government thought that it is better if they liberalized the production of the electricity to the private companies but they still want to stay as a distributor.

Fortunaltely one private company invested two years ago and it is still running untill now.
Even though the private company produces the electricity, people still buy eventually JIRAMA electricity.
(according to their agreement, the private company produces the electricity bu the state-owned JIRAMA sells it to the consumers)

After the private company arrived, the price increased a lot but the Government decided to subsidize it since it was really high for the population local. Therefore the price paid by the people increases a little bit which is actually meaningless comparing to the benefits that they have (decrease of blackout, more people can have electricity, etc)

But this fact affects the revenue of JIRAMA, they have to pay to the private company the amount of money that the local population don’t pay. Therefore there is an increase of unemployment. It is been a while (around three months) that JIRAMA cannot afford anymore the rent to the private company so the private one plans a lot of “black out” to compensate the losses.

According to the interview that I did, rich people want to privatize the electricity but “poor”, normal people and those who have manufactories want the Government to correct it as soon as possible because it affects directly their revenues.

I really what to study about the effect of the privatization of the electricity on JIRAMA (the state-owned)

So my research question is: to what extent government intervention or allowing a free market works for the supply of electricity in Mahajanga?


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I would reckon that it would be easier to use something as has the situation changed from mono to oligopoly? I was writing my EE in uemployment and it was pain in the ass, and completely useless and I wish I had a simple easily answerable question with clear definitions to be stated

Just my input though, good luck (;

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