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Licitaciones para el abastecimiento eléctrico de clientes regulados en Chile: Dificultades y oportunidades

Author

Listed:
  • Jorge, Moreno

    (Massachusetts Institute of Technology (MIT), Cambridge)

  • Rodrigo, Moreno

    (Imperial Collegen, London)

  • Hugh, Rudnick

    (Pontificia Universidad Católica de Chile, Santiago)

  • Sebastián, Mocarquer

    (Systep Ingeniería y Diseño, Santiago)

Abstract

A new auction scheme for supply contracts for the distribution companies was introduced in 2005 in the Chilean electricity regulation. It was intended to establish a contract market scheme that not only would stimulate supply development to ensure future electricity supply, but would also give certainty to investors. Through competitive bidding, it was expected to achieve efficient long-term prices. Although the concepts aimed at strengthening the market, its application has restricted the achievement of the original objectives. This paper summarizes the application of the auction scheme, its results and limitations, identifies lessons learned and makes proposals for improvement. The analysis identifies two fundamental problems of the current mechanism which will have to be addressed and improved in future processes: the lack of flexibility to address future uncertainty and the absence of criteria to address the lack of competition.

Suggested Citation

  • Jorge, Moreno & Rodrigo, Moreno & Hugh, Rudnick & Sebastián, Mocarquer, 2012. "Licitaciones para el abastecimiento eléctrico de clientes regulados en Chile: Dificultades y oportunidades," Estudios Públicos, Centro de Estudios Públicos, vol. 0(125), pages 139-168.
    • Handle: RePEc:cpt:journl:v::y:2012:i:125:p:139-168
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    References listed on IDEAS

    as
    1. Moreno, R. & Barroso, L.A. & Rudnick, H. & Mocarquer, S. & Bezerra, B., 2010. "Auction approaches of long-term contracts to ensure generation investment in electricity markets: Lessons from the Brazilian and Chilean experiences," Energy Policy, Elsevier, vol. 38(10), pages 5758-5769, October.
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    Cited by:

    1. Reus, Lorenzo & Munoz, Francisco D. & Moreno, Rodrigo, 2018. "Retail consumers and risk in centralized energy auctions for indexed long-term contracts in Chile," Energy Policy, Elsevier, vol. 114(C), pages 566-577.

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    More about this item

    Keywords

    electricity regulation; energy auctions; electricity supply contracts; regulated costumer rates;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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