The global evolution of competitive power markets

Competition in electricity is part of a general trend toward deregulation, from airlines to stock markets, that characterized economic evolution in much of the western world during the 1980s. The move to liberalize electricity in some countries has been spurred on by the disenchantment of politicians and large customers with the traditional monopolistic arrangements which are increasingly seen an inefficient and paternalistic. Currently, there are only four operating competitive power markets: Argentina, Chile, England, and Wales, and Norway. Although none have functioned for long, the beginnings are promising. The article outlines the experience of these open power market countries, stating how deregulation was accomplished and how it has affected power generation, investment, politics, and competition.