Compared Regulations: The Tariff Review Process in Brazil, Panama and Peru

Abstract

This paper compares the Discos tariff review process in Brazil, Panama and Peru, three Latin American countries where ldquoderegulationrdquo and privatization of the power industry and the setting of incentives regulation in the distribution branch has being successfully implemented through price/revenue cap schemes, hence stimulating efficiency. The paper discusses how the main components of the tariff are set in the three countries and the implications of the different approaches.