Tarificación de la Transmisión Eléctrica: Por Qué Licitar Es (Mucho) Mejor que Regular

  • Alexander Galetovic Universidad de Chile
  • Juan Ricardo Inostroza AES Gener S.A.

Abstract

There are at least two ways of fixing high voltage transmission tolls.
One is to regulate them in standard fashion; another is to allocate new
transmission lines in competitive auctions to the bidder offering the lowest
toll. In this paper we show that expected tolls are considerably lower if
lines are auctioned.
Auctions dominate regulation for three reasons. First, bidder competition
ensures lower expected tolls. Second, they increase the regulator’s bargaining
power. Third, if, as in Argentina, project users are allowed to
bid and build the line, they can induce even more intense competition.
We use our theoretical model to analyze the auction for the fourth
Comahue line in Argentina. We show that, had the toll been regulated,
it would have been at least 61% higher.
How to Cite
Galetovic, A., & Inostroza, J. R. (1). Tarificación de la Transmisión Eléctrica: Por Qué Licitar Es (Mucho) Mejor que Regular. Economic Analysis Review, 19(1), 77-117. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/36
Issue
Vol. 19 No. 1 (2004)
Section
Articles

Upon submission of an article, authors are asked to indicate their agreement to abide by an open-access license. The license permits any user to download, print out, extract, archive, and distribute the article, so long as appropriate credit is given to the authors of the work. The license ensures that your article will be as widely available as possible and that your article can be included in any scientific archive. Please read about the Creative Commons Attribution License before submitting your paper. 
Except where otherwise noted, content on this site is licensed under a Creative Commons Attribution 3.0 License