Introduciendo la competencia en las industrias de redes reguladas: de las jerarquías a los mercados en el sector de la electricidad

This paper reviews the main attributes of the electric sector and analyses from an institutional perspective the challenges of increasing the generation supply. Although the sector evolved with regulated monopolies, this institution creates its own costs; there is a trade of between the costs that come from the regulated monopolies and the benefits that come from the coordination of the operations and investment decisions among the vertical and horizontal industrial hierarchies. The vision that the costs of this organizational forms exceed the benefits, is worldwide accepted. For this reasons structural and regulatory reforms are been implemented in order to promote competition among the generation supply.