Abstract
The government of Spain has initiated a process of liberalizing the electricity market starting in 1998. The Ministry of Industry and Energy (MIE) signed a Protocol with the electric utilities in December 1996 outlining the general structure of these changes [(MIE (1996a))]. Broadly speaking, the Protocol calls for the transformation of the Spanish system from one based on a Central Purchasing Agent model to one based on retail competition.1 Prior to the Protocol, there was a less ambitious regulatory reform law enacted in 1994 which sought to introduce some competitive procurement elements. The prospects under that law, known as the LOSEN, were never particularly clear ([Kahn (1996)]). With the move toward retail competition, however, many important structural questions need to be addressed. These include the issue of stranded cost compensation and the feasibility of genuine competition.
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Kahn, E. (1998). Introducing Competition to the Electricity Industry in Spain: the Role of Initial Conditions. In: Zaccour, G. (eds) Deregulation of Electric Utilities. Topics in Regulatory Economics and Policy Series, vol 28. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-5729-6_11
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DOI: https://doi.org/10.1007/978-1-4615-5729-6_11
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