There is an increasing recognition by Governments in the Western Balkans of the need to address a number of long-standing issues in the power sector. One of the key constraints to implementing important reforms in the region is the lack of cost-reflective network tariffs and end-user tariffs. The existing price levels, which do not adequately reflect the cost of service provision, cannot support new generation investments, either by attracting private investors or by providing domestic utilities with the means to invest on their own.  For the purpose of assessing the financial viability of the power sector, The World Bank requested a comprehensive financial analysis of the power sector in the Western Balkans.