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Electricity Reform in Chile Lessons for Developing Countries

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Author Info
Michael Pollitt

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Abstract

Chile was the first country in the world to implement a comprehensive reform of its electricity sector in the recent period. Among developing countries only Argentina has had a comparably comprehensive and successful reform. This paper traces the history of the Chilean reform, which began in 1982, and assesses its progress and its lessons. We conclude that the reform has been very successful. We suggest lessons for the generation, transmission and distribution sectors, as well as the economic regulation of electricity and the general institutional environment favourable to reform. We note that while the initial market structure and regulatory arrangements did give rise to certain problems, the overall experience argues strongly for the private ownership and operation of the electricity industry.

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Paper provided by Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research in its series Working Papers with number 0416.

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Date of creation: Sep 2004
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Handle: RePEc:mee:wpaper:0416

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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. Federico Basañes & Eduardo Saavedra & Raimundo Soto, . "Post-Privatization Renegotiations and Disputes in Chile," ILADES-Georgetown University Working Papers inv117, Ilades-Georgetown University, School of Economics and Bussines. [Downloadable!]
  2. Ronald Fischer & Pablo Serra, 2000. "Regulating the Electricaly Sector in Latin America," Documentos de Trabajo 86, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
  3. Bitran, Eduardo & Serra, Pablo, 1998. "Regulation of privatized utilities: The Chilean experience," World Development, Elsevier, vol. 26(6), pages 945-962, June. [Downloadable!] (restricted)
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  4. Estache, Antonio & Rossi, Martin A. & Ruzzier, Christian A., 2002. "The case for international coordination of electricity regulation : evidence from the measurement of efficiency in South America," Policy Research Working Paper Series 2907, The World Bank. [Downloadable!]
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  5. 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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  6. Ronald Fischer & Alexander Galetovic, 2000. "Regulatory Governance and Chile's 1998-1999 Electricity Shortage," Documentos de Trabajo 84, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
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  7. M.G. Pollitt, 2000. "The Declining Role of the State in Infrastructure Investments in the UK," Cambridge Working Papers in Economics 0001, Faculty of Economics, University of Cambridge. [Downloadable!]
  8. Rodrigo Gutierrez & Pablo Serra & Ronald Fischer, 2003. "The Effects of Privatization on Firms and on Social Welfare: The Chilean Case," RES Working Papers 3150, Inter-American Development Bank, Research Department. [Downloadable!]
  9. Ronald Fischer & Rodrigo Gutiérrez & Pablo Serra, 2002. "The Effects of Privatization on Firms and on Social Welfare," Documentos de Trabajo 131, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
  10. Green, Richard J & Newbery, David M, 1992. "Competition in the British Electricity Spot Market," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 929-53, October. [Downloadable!] (restricted)
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  1. Yu, W. & Pollitt, M.G., 2009. "Does Liberalisation cause more Electricity Blackouts? Evidence from a Global Study of Newspaper Reports," Cambridge Working Papers in Economics 0911, Faculty of Economics, University of Cambridge. [Downloadable!]
  2. Torstein Bye, Annegrete Bruvoll and Finn Roar Aune, 2006. "The importance of volatility in inflow in a deregulated hydro-dominated power market," Discussion Papers 472, Research Department of Statistics Norway. [Downloadable!]
  3. Jamasb, T. & Neuhoff, K. & Newbery, D. & Pollitt, M., 2005. "Long-term Framework for Electricity Distribution Access Charges," Cambridge Working Papers in Economics 0551, Faculty of Economics, University of Cambridge. [Downloadable!]
  4. Daniel Platz, 2009. "Moving Beyond the Privatisation Debate: Different Approaches to financing Water and Electricity in Developing Countries," Working Papers id:1856, esocialsciences.com. [Downloadable!]
  5. Tooraj Jamasb & Michael Pollitt, 2005. "Electricity Market Reform in the European Union - Review of Progress toward Liberalization & Integration," Working Papers 0503, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research. [Downloadable!]
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  6. Machiel Mulder & Victoria Shestalova & Marc Lijesen, 2005. "Vertical separation of the energy-distribution industry," CPB Documents 84, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  7. Fernandes, Ana M. & Paunov, Caroline, 2008. "Foreign direct investment in services and manufacturing productivity growth: evidence for Chile," Policy Research Working Paper Series 4730, The World Bank. [Downloadable!]
  8. Pollitt, M., 2007. "Evaluating the evidence on electricity reform: Lessons for the South East Europe (SEE) market," Cambridge Working Papers in Economics 0756, Faculty of Economics, University of Cambridge. [Downloadable!]
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