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Transmission expansion in Argentina 3: The evolution of policy

Stephen Littlechild and Carlos J. Skerk

Energy Economics, 2008, vol. 30, issue 4, 1420-1461

Abstract: Argentina's 1992 electricity reform introduced the Public Contest method, which made major expansions of the transmission system the responsibility of users rather than the transmission company or regulatory body. Policy evolved to allow incumbent transmission companies as well as users to propose expansions. In 1999 a second round of reforms envisaged financial transmission rights and At-Risk expansions to complement the Public Contest method, and to achieve more effectively the original aim of economic efficiency. In addition a Federal Transmission Fund was introduced with provision for expansions determined by federal and provincial governments. With a change of presidency in December 1999 the former modifications were mostly not implemented but a Federal Transmission Plan was launched. Especially since the economic crisis of early 2002, and the advent of a new presidency in 2003, the role of government has increased further, almost to the exclusion of the Public Contest and other methods. Extensive transmission expansions are now underway, reflecting federal financing and political pressures from outlying provinces, rather than users' decisions and economic considerations.

Date: 2008
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