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Regulation of transmission expansion in Argentina Part II: Developments since the Fourth Line

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Author Info
Littlechild, S.C.
Skerk, C.J.
Abstract

Argentina’s 1992 transmission expansion policy was subsequently modified by, for example, including provision for transmission companies and proposing quality and substation expansions. There have been several such expansions, and no lack of investment in quality and reliability of supply. In 1999, reflecting a decision to give greater weight to political considerations, a Federal Transmission Plan was introduced to build lines designated by the federal and provincial governments. The original reform led to less investment in major transmission lines but more intensive use of existing lines. Competition to construct expansions developed, leading to lower construction costs. Thus the Argentine transmission expansion mechanism was a considerable success in terms of meeting the requirements of users efficiently. This experience suggests that involving users in the regulation of monopoly networks is feasible, and the scope for it may be greater than generally appreciated. However, the reconciliation of economic and political considerations needs further consideration.

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Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0465.

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Length: 75
Date of creation: Nov 2004
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Handle: RePEc:cam:camdae:0465

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Keywords: Argentina; electricity; transmission; regulation;

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Find related papers by JEL classification:
L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Paul Joskow & Jean Tirole, 2003. "Merchant Transmission Investment," Working Papers 0304, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research. [Downloadable!]
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  2. Chisari, Omar O. & Dal-Bo, Pedro & Romero, Carlos A., 2001. "High-tension electricity network expansions in Argentina: decision mechanisms and willingness-to-pay revelation," Energy Economics, Elsevier, vol. 23(6), pages 697-715, November. [Downloadable!] (restricted)
  3. Pollitt, M.G., 2004. "‘Electricity Reform in Argentina: Lessons for Developing Countries’," Cambridge Working Papers in Economics 0449, Faculty of Economics, University of Cambridge. [Downloadable!]
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  4. Hogan, William W, 1992. "Contract Networks for Electric Power Transmission," Journal of Regulatory Economics, Springer, vol. 4(3), pages 211-42, September.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Pollitt, M.G., 2004. "‘Electricity Reform in Argentina: Lessons for Developing Countries’," Cambridge Working Papers in Economics 0449, Faculty of Economics, University of Cambridge. [Downloadable!]
    Other versions:
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