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

  • Littlechild, S.C.
  • Skerk, C.J.

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
Date of revision:
Handle: RePEc:cam:camdae:0465
Note: CMI,IO
Contact details of provider: Web page: http://www.econ.cam.ac.uk/index.htm

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  1. Joskow, P. & Tirole, J., 2003. "Merchant Transmission Investment," Cambridge Working Papers in Economics 0324, Faculty of Economics, University of Cambridge.
  2. Hogan, William W, 1992. "Contract Networks for Electric Power Transmission," Journal of Regulatory Economics, Springer, vol. 4(3), pages 211-42, September.
  3. 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.
  4. Pollitt, M.G., 2004. "‘Electricity Reform in Argentina: Lessons for Developing Countries’," Cambridge Working Papers in Economics 0449, Faculty of Economics, University of Cambridge.
  5. Littlechild, S.C. & Skerk, C.J., 2004. "Regulation of transmission expansion in Argentina Part I: State ownership, reform and the Fourth Line," Cambridge Working Papers in Economics 0464, Faculty of Economics, University of Cambridge.
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