Analysis of the Impact of Including Tariff Revision Procedures in Transmission Concessions Contracts Auctions

摘要

The growing global need for investments to expand infrastructure in the electricity sector has prompted a theoretical debate over the various regulatory models applicable to this sector, particularly those seeking to attain efficient level of investment and pricing in natural monopoly segments, such as electricity transmission or distribution. In this article we analyze the regulatory model adopted for expansion of transmission segment in Brazil. The combination of franchise bidding with revenue cap rules seems to be more efficient than only the use of competitive bidding for long-term contracts.