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...

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...