Date Added: Mar 2010
This paper attempts to assess the social welfare impact of the restructuring and privatisation of the electricity market in Peru. The target companies, Electrolima and Electro Sur Medio, account for 64 per cent of the total distribution market and 100 per cent of the privatised distribution companies respectively. Actual and counterfactual operating costs are examined. A separate analysis is performed for each company, due to the differences in terms of economies of scale and market structure. The benefits of being connected were also computed based on counterfactual scenarios.