Outage Cost in Chilean Industry

Pablo Serra and Gabriel Fierro

No 10, Documentos de Trabajo from Centro de Economía Aplicada, Universidad de Chile

Abstract: This paper estimates the cost of energy shortages to Chilean industry. The information was obtained from a sample-survey carried out shortly after the 1989 electricity restriction. The results obtained show that a 10%, one-month, equi-proportional restriction involves and average net outage cost of Usc 3.2 per kWh when a limited, selective restriction is applied. We show that, under current legislation, the outage cost in fact lies between the cost of an equiproportional and a selective restriction. However, subtle modifications to legislation would make it possible to allocate the scarce supply efficiently.

Date: 1996
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Journal Article: Outage costs in Chilean industry (1997)
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