Summary of Private Participation in The Electricity Sector
Prior to 1991, the electricity sector in Argentina was vertically integrated. The new legal framework for the electricity sector included: vertical and horizontal unbundling of generation, transmission and distribution; opening up of all segments to the private sector; and separation of the regulatory function from policy setting.
Currently, private and state-owned companies carry out generation in a completive, mostly liberalized electricity market, with 75% of total installed capacity in private hands. The publicly owned share corresponds to nuclear generation and to the two bi-national hydropower plants: Yacyretá (Argentina-Paraguay) and Salto Grande (Argentina-Uruguay). On the other hand, the transmission and distribution sectors are highly regulated and less competitive than generation. In transmission, the Compañía Nacional de Transporte Energético en Alta Tension (Transener) operates the national electricity transmission grid, while in the distribution sector, three private companies, Edenor (Empresa Distribuidora y Comercializadora Norte), Edesur (Electricidad Distribuidora Sur) and Edelap (Empresa de Electricidad de la Plata), dominate a market with 75% control by private firms.
| Activity | Private participation (%) |
|---|---|
| Generation | 75% of installed capacity |
| Transmission | 0% |
| Distribution | 75% of clients |
Read more about this topic: Electricity Sector In Argentina
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