Assessing the Governance of Electricity Regulatory Agencies in the Latin American and the Caribbean Region: A Benchmarking Analysis

57 Pages Posted: 20 Apr 2016

See all articles by Luis Alberto Andres

Luis Alberto Andres

World Bank

J. Luis Guasch

World Bank - Finance, Private Sector and Infrastructure Sector (LCSFP)

Makhtar Diop

World Bank

Sebastian Lopez Azumendi

World Bank

Date Written: November 1, 2007

Abstract

This paper focuses on an evaluation and benchmarking of the governance of regulatory agencies in the electricity sector in Latin American Countries (LAC). Using a unique database, we develop an index of regulatory governance and rank all the agencies in the LAC countries. The index is an aggregate number of the evaluation of four key governance characteristics: autonomy, transparency, accountability, and regulatory tools, including not only formal aspects of regulation but also indicators related to actual implementation. Based on 18 different indexes, we analyze the positions of agencies with regard to different aspects of their regulatory governance, considering not only performance in each variable but also scores in the different components of each category. This evaluation allows for the identification of particular country shortcomings regarding governance, and indicates needed improvements. Although the region shows an overall good governance design of their regulatory agencies, the implementation of the independent regulator model still faces several challenges. This is particularly evident in political autonomy and in the informal aspects of governance, where the region shows the largest number of countries with the lowest scores. Trinidad and Tobago and Brazil show the best results and Ecuador, Honduras, and Chile the poorest performances. The rest of the countries vary according to the different indexes. We give each governance variable equal weights and positively test the robustness of our approach using Principal Component Analysis.

Keywords: National Governance, Governance Indicators, Public Sector Corruption & Anticorruption Measures, Country Strategy & Performance, Banks & Banking Reform

Suggested Citation

Andres, Luis Alberto and Guasch, José Luis and Diop, Makhtar and Azumendi, Sebastian Lopez, Assessing the Governance of Electricity Regulatory Agencies in the Latin American and the Caribbean Region: A Benchmarking Analysis (November 1, 2007). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2007. Available at SSRN: https://ssrn.com/abstract=1029495

Luis Alberto Andres

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

José Luis Guasch

World Bank - Finance, Private Sector and Infrastructure Sector (LCSFP) ( email )

1818 H Street, NW
Washington, DC 20433
United States
202 473 8606 (Phone)
202 522 2106 (Fax)

Makhtar Diop

World Bank ( email )

1818 H Street
Washington, DC 20433
United States

Sebastian Lopez Azumendi (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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