IDEAS home Printed from https://ideas.repec.org/p/zbw/zewdip/7004.html

Latin versus European Power: A Tale of Two Market Reforms

Author

Listed:
  • Mennel, Tim
  • Viecens, Maria Fernanda

Abstract

This paper compares electricity market reforms in the European Union with reforms in Chile and Brazil. The paradigm of competitive market structures for the electricity sector, as developed in the economics literature, is outlined: competitive markets in generation and retailing and an independent regulator of the natural monopoly in transmission and generation. We present the institutional framework as well as the development of electricity markets in the European Union, Chile and Brazil and discuss in how far they comply with the textbook paradigm. Considerable differences emerge: While the European Union follows a path of full liberalization, facing, however, great difficulties in achieving unbundling of vertically integrated electricity companies and transnational competition, Chile and Brazil have only partially liberalized their electricity sector, enacting regulation to ensure household consumer protection and security of supply.

Suggested Citation

  • Mennel, Tim & Viecens, Maria Fernanda, 2007. "Latin versus European Power: A Tale of Two Market Reforms," ZEW Discussion Papers 07-080, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:7004
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/24665/1/dp07080.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Geller, Howard & Jannuzzi, Gilberto de Martino & Schaeffer, Roberto & Tolmasquim, Mauricio Tiomno, 1998. "The efficient use of electricity in Brazil: progress and opportunities," Energy Policy, Elsevier, vol. 26(11), pages 859-872, September.
    2. Tooraj Jamasb & Michael Pollitt, 2006. "Electricity Market Liberalisation and Integration in the European Union," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(02), pages 16-23, July.
    3. repec:aen:journl:2005se-a02 is not listed on IDEAS
    4. M. Pollitt, 2004. "Electricity reform in Chile. Lessons for developing countries," Competition and Regulation in Network Industries, Intersentia, vol. 5(3), pages 221-263, September.
    5. Glanchant, J-M. & FLévêque, F., 2006. "Electricity Internal Market in the European Union: What to do next?," Cambridge Working Papers in Economics 0623, Faculty of Economics, University of Cambridge.
    6. repec:ces:ifodic:v:4:y:2006:i:2:p:14567500 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. William Yu & Michael G. Pollitt, 2009. "Does Liberalisation cause more electricity blackouts? Evidence from a global study of newspaper reports," Working Papers EPRG 0902, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simshauser, Paul, 2024. "On static vs. dynamic line ratings in renewable energy zones," Energy Economics, Elsevier, vol. 129(C).
    2. Marino, Marianna & Parrotta, Pierpaolo & Valletta, Giacomo, 2019. "Electricity (de)regulation and innovation," Research Policy, Elsevier, vol. 48(3), pages 748-758.
    3. repec:aen:journl:33-1-a04 is not listed on IDEAS
    4. Schober, Dominik, 2013. "Static vs. dynamic impacts of unbundling: Electricity markets in South America," ZEW Discussion Papers 13-033, ZEW - Leibniz Centre for European Economic Research.
    5. Daniel Platz, 2009. "Moving Beyond the Privatisation Debate: Different Approaches to financing Water and Electricity in Developing Countries," Working Papers id:1856, eSocialSciences.
    6. Simshauser, Paul, 2021. "Vulnerable households and fuel poverty: Measuring the efficiency of policy targeting in Queensland," Energy Economics, Elsevier, vol. 101(C).
    7. Dzikri Firmansyah Hakam, 2018. "Market Power Modelling in Electricity Market: A Critical Review," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 347-356.
    8. Wang, Aijia & Mah, Daphne Ngar-yin, 2026. "A systematic review on varieties, effectiveness and determinants of consumer engagement in the context of electricity market reforms from a European-Asian comparative perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 226(PD).
    9. Tooraj Jamasb & Rabindra Nepal & Govinda Timilsina & Michael Toman, 2014. "Energy Sector Reform, Economic Efficiency and Poverty Reduction," Discussion Papers Series 529, School of Economics, University of Queensland, Australia.
    10. Hakam, Dzikri Firmansyah, 2019. "Mitigating the risk of market power abuse in electricity sector restructuring: Evidence from Indonesia," Utilities Policy, Elsevier, vol. 56(C), pages 181-191.
    11. Nepal, Rabindra & Jamasb, Tooraj, 2012. "Reforming small electricity systems under political instability: The case of Nepal," Energy Policy, Elsevier, vol. 40(C), pages 242-251.
    12. Paul Simshauser & Tim Nelson & Joel Gilmore, 2022. "The sunshine state: implications from mass rooftop solar PV take-up rates in Queensland," Working Papers EPRG2219, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    13. Ghisi, Enedir & Gosch, Samuel & Lamberts, Roberto, 2007. "Electricity end-uses in the residential sector of Brazil," Energy Policy, Elsevier, vol. 35(8), pages 4107-4120, August.
    14. Rocha, Katia & Camacho, Fernando & Braganca, Gabriel, 2007. "Return on capital of Brazilian electricity distributors: A comparative analysis," Energy Policy, Elsevier, vol. 35(4), pages 2526-2537, April.
    15. Simshauser, P. & Gohde, N., 2024. "3-Party Covenant Financing of 'Semi-Regulated' Pumped Hydro Assets," Cambridge Working Papers in Economics 2425, Faculty of Economics, University of Cambridge.
    16. 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.
    17. Sheinbaum, Claudia & Ruíz, Belizza J. & Ozawa, Leticia, 2011. "Energy consumption and related CO2 emissions in five Latin American countries: Changes from 1990 to 2006 and perspectives," Energy, Elsevier, vol. 36(6), pages 3629-3638.
    18. Muyi Yang & Yuanying Chi & Kristy Mamaril & Adam Berry & Xunpeng Shi & Liming Zhu, 2020. "Communication-Based Approach for Promoting Energy Consumer Switching: Some Evidence from Ofgem’s Database Trials in the United Kingdom," Energies, MDPI, vol. 13(19), pages 1-16, October.
    19. Erdogdu, Erkan, 2010. "Electricity Market Reform: Lessons for developing countries," MPRA Paper 27317, University Library of Munich, Germany.
    20. Jamasb,Tooraj & Nepal,Rabindra & Timilsina,Govinda R., 2015. "A quarter century effort yet to come of age : a survey of power sector reforms in developing countries," Policy Research Working Paper Series 7330, The World Bank.
    21. Torstein Bye & Annegrete Bruvoll & Finn Roar Aune, 2006. "The importance of volatility in inflow in a deregulated hydro-dominated power market," Discussion Papers 472, Statistics Norway, Research Department.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:7004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zemande.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.