Liberalisation of the Spanish power industry: Work in progress

Algunas Asignaturas Pendientes de la Regulación del Sector Eléctrico Español (Unresolved issues in the Restructuring of the Spanish Power Industry), by Paulina Beato and Juan Delgado.

Published in Energía y Regulación. (J.L. García Delgado and J.C. Jiménez, eds.). Aranzadi Civitas. December 2007.

This chapter assesses the current state of electricity regulation in Spain highlighting the main issues which reform is pending in order to achieve a fully competitive and efficient electricity industry. The restructuring of the Spanish power industry has failed to reduce concentration of supply and to incentivise new entry. Separation between generation and distribution is not fully effective. There is still scope to introduce new reforms in the Spanish power regulation in order to promote effective competition by removing distorting regulation, removing obstacles to the entry of new suppliers and creating incentives for rational behaviour of firms and consumers.

A summary version of this chapter is published at Boletín Inflación y Análisis Macroeconómico. Instituto Flores de Lemus. Universidad Calos III de Madrid. January 2007.

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