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Redesigning competitive electricity markets: The case of Spain

I.J. Pérez-Arriaga

The Spanish power sector may be a good example of a process of restructuring and liberalization that fails to succeed, despite a basically sound Electricity Act, because of an inadequate industrial structure and multiple flaws in the secondary regulation. This paper describes the situation of regulatory gridlock in the wholesale and retail Spanish electricity markets up to the summer of 2005, and examines the underlying reasons for it. In November 2004 the Spanish Government asked the author of this article to write a White Paper with a proposal for regulatory reform. The diagnostic and main recommendations of this White Paper, which was delivered in July 2005, are presented here.

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Invited paper. 3rd International Conference:The European Electricity Market Challenge of the Unification, EEM-06. May 24-26, 2006, Warsaw, Poland

Published: May 2006.

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