Power sector reform is rapidly spreading across all corners of the developing world at an alarmingly rapid pace. While the rationales for reform seem to have gained acceptance among the stakeholders, the reform model and process are contested. This paper examines the impacts of reform using the promised outcomes as a basis for analysis. The ability of reform to meet the developmental challenges facing the reformers is explored. It concludes that reform has had some achievements if conventional performance indicators are used but also questions the validity of some of these indicators. Reform has however not fulfilled many of its goals and the prevailing recipes are likely to leave developing countries socially and economically worse off than in the pre-reform period. Progressive government intervention is needed to shift reform process towards a more responsible development path.