Abstract

MOLINA VARGAS, Alejandro. Structure of the Mexican Electricity Industry: The Model of Unique Buyer. Econ: teor. práct [online]. 2017, n.46, pp.71-95. ISSN 2448-7481.  https://doi.org/10.24275/etypuam/ne/462017/molina.

The aim of our research is to evaluate the reforms implemented in the Mexican electrical industry in the 1990s, and more importantly in the year 2013, to determine whether “the unique buyer model” constitutes an optimum structure. A theoretical model, built to show the effects of these reforms on prices, reached the following conclusions: monopoly power in the segments of transmission and distribution extends to the generating segment of the industry, which is competitive. There are no earnings from productive efficiency, in other words there is no reduction of monopoly production costs: consumers pay higher prices for the electricity they consume. Our research hypothesis is that Independent Power Producers must have access to transportation networks to build a wholesale market for electricity. Also, the most important part of monopoly power can be exploited without being integrated in the generation segment.

Keywords : Monopoly; regulation and access to networks; electricity reform; prices.

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