Abstract: The energy markets have been, or are in the process of being, restructed in many parts of the world. A variety of restructuring models is beign proposed, considerd, and expermiented with in different countries. The electric power industry represents are largest global industry ever to move from regulation to competition. This article presents an overview of the main structual components of the emerging deregulated electric power sector. The implications of restructuring the electric power sector in developing countries in the light of the experience of industrialized countries are evaluated, with a view to identifying potential pitfalls and opportunities for developing countries. The article summarily describes the crucial difference between the eletricity funding situation in industrialized and developing nations, and the dangers of indiscriminate transfer of market structures and regulatory approaches. The industrialized countries’ expereince has not provided an infallible general path, and each developing country must search for solutions within its own context.