| Abstract: |
In this paper we describe the Spanish electricity industry and its current
regulatory regime. Special emphasis is given to the description and discussion
of market design issues (including stranded cost recovery), the evolution of
market structure, investment in generation capacity and network activities. We
also provide a critical assessment of the 1997 regulatory reform, which did
not succeed in introducing effective competition, but retained an opaque
regulation which has been subject to continuous governmental interventionism.
Furthermore, the implementation of the Kyoto agreement could show the lack of
robustness of the regulatory regime. |