COMPETITIVE MARKETS IN ELECTRICITY SUPPLY: ASSESSMENT OF THE SOUTH AMERICAN EXPERIENCE

The paper analyzes the South American experience in the creation of competitive markets in the electric industry, which has pioneered changes worldwide. The changes began in 1982, when Chile formalized an electric power reorganization. Argentina followed in 1992, and then Peru in 1993, Bolivia and Colombia in 1994. The Central American countries and Brazil joined the group in 1997. Venezuela and Ecuador have also started similar processes. The paper contributes with an assessment of the insights gained with the introduction of competition, as well as management challenges and opportunities. Problems in competitive markets operation are identified, along with the regulation of monopolistic activities, transmission access and distribution pricing. The consequent global interaction of the energy markets and related emerging issues are also analyzed.