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Electricity Reform in Chile: Lessons for Developing Countries

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  • Pollitt, M.G.
Abstract
Chile was the first country in the world to implement a comprehensive reform of its electricity sector in the recent period. Among developing countries only Argentina has had a comparably comprehensive and successful reform. This paper traces the history of the Chilean reform, which began in 1982, and assesses its progress and its lessons. We conclude that the reform has been very successful. We suggest lessons for the generation, transmission and distribution sectors, as well as the economic regulation of electricity and the general institutional environment favourable to reform. We note that while the initial market structure and regulatory arrangements did give rise to certain problems, the overall experience argues strongly for the private ownership and operation of the electricity industry.

Suggested Citation

  • Pollitt, M.G., 2004. "Electricity Reform in Chile: Lessons for Developing Countries," Cambridge Working Papers in Economics 0448, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:0448
    Note: CMI, IO
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    1. Federico Basañes & Eduardo Saavedra & Raimundo Soto, "undated". "Post-Privatization Renegotiations and Disputes in Chile," ILADES-UAH Working Papers inv117, Universidad Alberto Hurtado/School of Economics and Business.
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    More about this item

    Keywords

    Chile; electricity; restructuring; regulation; privatisation.;
    All these keywords.

    JEL classification:

    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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