Is the model of telecoms liberalisation being replicated in the electricity sector?
The answer is yes … but with significant structural differences.
Both the telecommunications model and the one proposed for the electricity market share common elements of institutional and economic design.
In the downloadable PDF, our expert, Erick Jiménez, provides a comprehensive analysis based on six reasons.
Beyond the comparison with telecommunications, the updated Electricity Model follows its own logic: it combines economic competition with the technical coordination required to ensure the balance of the electricity system.
This is explained by the nature of the sector: whilst in telecommunications we have differentiable services and independent operation, in electricity the product is homogeneous, with an instantaneous balance between supply and demand.
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Both the telecommunications model and the model proposed for the electricity market share common features in terms of institutional and economic design.
