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Regulation of Privatized Utilities: The Chilean Experience

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Author Info
Eduardo Bitrán
Pablo Serra ()

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Abstract

The privatization of Chile's public utilities has led to substantial new investment and improvements in internal efficiency. However, the limited information available to regulators, combined with their insufficient technical capacity, have combined to prevent efficiency increases being fully passed on to consumers in price reductions. In fact, drastic price cuts have occurred only where competition has emerged, so achieving competition wherever possible should be the main policy goal. Competition can be enhanced by either modifying existing regulations, as happened in long-distance telecommunications, or by a more active anti-trust policy. To achieve this, the regulatory institutions clearly need strengthening.

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Paper provided by Centro de Economía Aplicada, Universidad de Chile in its series Documentos de Trabajo with number 32.

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Date of creation: 1998
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Handle: RePEc:edj:ceauch:32

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  1. Michael Pollitt, 2004. "Electricity Reform in Chile Lessons for Developing Countries," Working Papers 0416, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research. [Downloadable!]
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  2. Zhang, Yingang & Parker, David & Kirkpatrick, Colin, 2004. "Competition, Regulation and Privatisation of Electricity Generation in Developing Countries: Does the Sequencing of the Reforms Matter?," Centre on Regulation and Competition (CRC) Working papers 30599, University of Manchester, Institute for Development Policy and Management (IDPM). [Downloadable!]
    Other versions:
  3. Luis Gutierrez, 2002. "Regulatory governance in the latinamerican telecommunications sector," BORRADORES DE INVESTIGACIÓN 003447, UNIVERSIDAD DEL ROSARIO - FACULTAD DE ECONOMÍA. [Downloadable!]
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This page was last updated on 2009-11-10.


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