Abstract

ROJAS, Mariano  and  CORRAL, Hugo. Electric Reform: Impact on Residential and Industrial Prices. Inv. Econ [online]. 2008, vol.67, n.263, pp.17-47. ISSN 0185-1667.

This investigation studies the impact of electric reforms on prices paid by residential and industrial consumers. It uses a panel database for 20 countries members of the Organization for Economic and Co-operation and Development (OECD) and along 23 years to study the behavior of residential and industrial prices in different electric regimes. On the basis of the relationship between prices and regimes, the investigation shows that there is an asymmetric impact of electric reforms on prices paid by residential and industrial consumers. Residential consumers benefit the most from electric regimes that require moderate reforms -mostly ownership changes in the generation sector of the industry-, but which keep the industry strongly integrated and with a strong supervisory board. Industrial consumers get the largest benefits from advanced reforms that introduce private ownership, vertical disintegration, and competition to the industry. Thus, those reforms that favor the interest of one group are not in the best interest of the other group. This asymmetry of impact of electric regimes constitutes a relevant factor in the study of the political economy of electric reform, as well as in the evaluation of its social benefits. The investigation shows that before launching an electric reform, countries must address not only the why question, but also a for-whom question.

Keywords : electrical reform; prices; political economy; Mexico.

        · abstract in Spanish     · text in Spanish     · Spanish ( pdf )