Electricity prices have seen a consistent upward trend since the implementation of Mexico's electricity market reform (EMR). This has been interpreted by some as a failure of the EMR. In this paper we study the determinants of such price increases. We calculate the generation cost curve of the...

Electricity prices have seen a consistent upward trend since the implementation of Mexico's electricity market reform (EMR). This has been interpreted by some as a failure of the EMR. In this paper we study the determinants of such price increases. We calculate the generation cost curve of the...

El articulo examina el establecimiento de precios maximizadores de ganancias, segun una version estilizada del plan de precios tope utilizado por la Comision Reguladora de Energia de Mexico, para efectuar el transporte y la distribucion de gas natural. En este plan, el ingreso promedio de la...