One of the critiques to the regulatory framework of the Chilean electricity sector is the lack of flexibility for regulated prices (nodal prices) to adapt to changes in supply and demand. We develop a simple model to estimate welfare losses when using uni

In this paper we discuss second-generation electricity reforms being formulated in Latin America and how they are being reshaped by the California crisis, which had stood as a paradigm, at least in theory, for fully competitive markets. We argue that the main lesson policy makers in Latin...