On Restructuring, Regulation, and Competition in Utility Industries: Experience in the United Kingdom and Implications for Latin America
39 Pages Posted: 20 Apr 2011
Date Written: December 1996
There are two similarities between the utility privatization programs of the UK and Latin America. Privatization has largely consisted of the transfer of industry-dominant, state companies into the private sector, often with statutory monopoly powers. In addition, the extensive use of price cap rather than rate-of-return regulation. A difference is that, arguably, the UK tried to create a fair but flexible regulatory policy by establishing a set of individual industry regulators somewhat independent from the government with considerable discretionary powers.
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