Electricity Reform in Argentina: Lessons for Developing Countries

Abstract

Argentina was one of the first countries in the world to implement a comprehensivereform of its electricity sector in the recent period. Among developing countries onlyChile has had a comparably comprehensive and successful reform. This paper traces thehistory of the Argentine reform, which began in 1992, and assesses its progress and itslessons. We conclude that the reform was very successful prior to the collapse of theArgentine peso in early 2002. We suggest lessons for the generation, transmission anddistribution sectors, as well as the economic regulation of electricity and the generalinstitutional environment favourable to reform. We note that the achievements of thesector are now threatened by the delays in tackling the financial consequences of the peso devaluation.