The establishment of the new competitive market failed: the distribution networks were not un-bundled and privatized, and ENEE continued operating as a vertically integrated state-owned enterprise that maintained its central role in energy planning and policy making. In addition, the principles of cost covering tariffs and targeted subsidies were not properly implemented due both to inadequate political commitment and to an important dependency on imported oil for power generation. This led to high and volatile generation prices that were not passed on to retail tariffs.