Summary of Private Participation in The Electricity Sector
The Electricity Law 1994/1604 mandated the privatization of the electricity system and the unbundling of generation, transmission and distribution activities, which had all been in the hands of ENDE (Empresa Nacional de Electricidad) the vertically integrated public utility. Today, 100% of generation, transmission and distribution activities are in private hands.
Three of the eight generation companies in the interconnected system represent 70% of total generation, with COBEE (Compañía Boliviana de Energía Eléctrica) being the most important. Transmission in the National Interconnected System is in the hands of just two companies as entry in this sector is institutionally restricted. As for distribution, the six existing companies enjoy a geographic monopoly in their concession areas. The largest company is Electropaz, which is majority-owned by Spain's Iberdrola.
| Activity | Private participation (%) |
|---|---|
| Generation | 100% |
| Transmission | 100%* |
| Distribution | 100% |
| Investment | Private participation (%) |
| Generation, transmission and distribution (2004) | 50% |
(*) 53% of the transmission network is operated by ISA Bolivia, a subsidiary of ISA Colombia, which is controlled by the Colombian government.
Read more about this topic: Energy In Bolivia
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